Quiz is reportedly preparing to close hundreds of UK stores, around one-third of its portfolio, in a bid to shore up its finances.

The high street retailer, which currently operates 60 standalone outlets nationwide and employs 1,500 staff, has proposed this plan to stave off administration.

It comes just five years after the brand was hit hard by enforced temporary store closures during lockdown, which saw its sales slump 77% to £13million in the five months to August 31, 2020.

Quiz only reopened 60 of the 75 UK stores it operated before the Covid-19 hit, partly due to the retail sector’s pre-existing challenges.

The Ramzan family, who founded the company in 1993 and continue to lead Quiz, are planning to overhaul the business.

Sheraz Ramzan has been the current CEO since March 2023, and business chair Peter Cowgill, former head of JD Sports, has also been brought on board to steer the retailer through its recovery phase.

As per a Telegraph report, Ramzan is keen on reducing costs by shedding the chain’s least profitable stores. Quiz is also planning to delist from the London Stock Exchange’s AIM market and revert to private ownership following a shareholder vote earlier this month.

It has also engaged Teneo restructuring experts to assist in exploring its options. Possible strategies include a pre-pack administration or a company voluntary arrangement (CVA).

A pre-pack administration is a legal procedure that allows a struggling firm to sell its assets before appointing an administrator, while a CVA enables a company’s debts to be repaid over a mutually agreed time frame.

A source close to the matter has disclosed to the media that “nothing is being ruled out” regarding the retailer’s future, with an announcement expected in the next few weeks.

The company recently faced a cash crisis before Christmas due to a significant drop in sales in physical and online stores.

Last summer, Quiz’s liquidity was approximately £2.3million, which included £400,000 in cash reserves and £1.9million in undrawn banking facilities, primarily from HSBC. The brand had to secure a £1million emergency loan from the father of CEO Sheraz, Tarak Ramzan.

Despite this, HSBC has hesitantly continued supporting the business, prompting Quiz to urgently search for alternative financing options, potentially under more stringent conditions. Last year, Quiz reported losses close to £7million, starkly contrasting the £2.3million profit made the previous year.