Retailer posts loss
Quiz says little impact from Debenhams and Arcadia
Quiz has faced ‘significant challenges’
Scottish fashion chain Quiz said it will withstand the closure of Debenhams stores and the uncertainty over Arcadia where it has a number of concessions.
Glasgow-based Quiz swung to an underlying EBITDA loss of £3.4 million for the half year to the end of September from a profit of £6.3m in the corresponding period in 2019.
Chief executive Tarak Ramzan said demand was impacted significantly by the pandemic, with group revenue down 73% period-on-period to £17.2m from £63.3m.
The company said it has 85 concessions in Debenhams stores and 29 in Outfit stores operated by Arcadia.
“We note the announcement that Boohoo has acquired the intellectual property assets of Debenhams and that these stores are expected to close, and that there is uncertainty as to Arcadia’s future,” it said.
“There is no financial exposure to outstanding balances due from these businesses and the redundancy costs that would arise from these store closures would not be significant.”
Mr Ramzan said: “As with other omni-channel retailers, Quiz has faced significant challenges as a result of the COVID-19 pandemic. We have taken a number of actions to protect our customers and people, preserve liquidity, and restructure the size and cost base of our store estate to adjust to the new normal of retail.
“Whilst we continue to rebalance our product offering towards more casual clothing reflecting near term customer demand, given our focus on occasion wear, demand for our products has been impacted significantly by the pandemic.
“However, we remain confident in the strength of our brand and are highly confident that demand for the brand’s trademark occasion wear will recover when restrictions on social events are eased.
“We are confident that the actions taken to preserve liquidity and reduce our cost base mean that the group can return to profitable growth as market conditions improve.”