QUIZ PLC (LON:QUIZ) has announced it will only reopen 60 out of the 75 UK stores it operated before the coronavirus pandemic lockdown.
The group said its three stores in Spain will remain permanently closed, while in the Republic of Ireland four of the seven sites have reopened, with negotiations continuing in relation to two other stores.
The fashion retailer started a restructuring of its estate in June having acquired 82 locations for £1.3mln after its standalone stores division Kast was placed into administration.
In the five months to August 31, 2020, QUIZ sales slumped by 77% to £13mln, while gross margins were 6% lower than last year due to heavy discounting.
As of September 8, the group had £6mln in cash as well as £3.5mln of bank facilities available expiring in October, which it intends to renew.
Although it is mostly focused on occasionwear, the AIM-listed firm has extended its casual ranges since people are not looking for smart clothes as most events and parties were cancelled during lockdown.
"It was obvious given QUIZ's product range that the Covid-19 ridden summer would have been tough and today's statement shows us just how bad it got," analysts at Peel Hunt commented.
"The dressy range was sadly inappropriate at a time when nobody was going out and there is little hope that life will return to party-normality any time soon."
Shares slipped 5% to 7.1p on Wednesday at the opening bell.
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