'Onerous rents' blamed

Quiz warns of more store closures over ‘onerous rents’

Quiz girl

Fashion stakes: stores are under review

Scottish fashion chain Quiz Clothing warned that more shops will close after taking a £7m exceptional charges on high rents and restructuring of its portfolio.

The company said “store impairments and onerous leases” meant some stores would close if rents could not be renegotiated to make them profitable.

Underlying operating profit fell 85% to £600,000 and underlying EBITDA by 54% to £2.7m, while there was a bottom line loss of £6.8m.

The Glasgow-based company said a continued reduction in footfall across its standalone stores and concessions have resulted in a “sustained and weaker than initially anticipated negative like for like performance”.

Sales in the group’s UK standalone stores and concessions decreased by 11% to £31.3m.

In a statement the company said the average lease length on its stores remains relatively low at 26 months and it continues to appraise the economics of each store as leases come up for renewal.

“Whilst we have made an exceptional charge against losses that may arise from existing lease arrangements, we anticipate that we will continue to operate a number of these stores after the expiry of their existing lease terms further to renegotiating lower lease costs.

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.