Fashion retailer Quiz Clothing has given an update on its progress with lease renegotiations and sales performance. The company has successfully negotiated new lease arrangements with landlords for its standalone Quiz stores, resulting in the reopening of 48 out of 75 previously closed stores. While it plans to eventually operate around 60 standalone stores in the UK, the reopened stores now have flexible rental terms based on generated revenues, rather than fixed arrangements, and an average lease length of 24 months.

In addition to the closure of its seven stores in Ireland and three in Spain, Quiz Clothing experienced a significant decline in sales due to the temporary closure of physical stores and concessions, as well as the suspension of online operations. Sales plummeted by 77% to £12.8 million between April and August, with UK physical store sales falling by 89% to £2.9 million and online sales decreasing by 54% to £8 million. These sales declines were attributed to lower demand during the period, leading to increased discounting and decreased gross margins.

As of now, Quiz Clothing has £6.1 million in available cash and £3.5 million in expiring bank facilities, which it intends to renew. However, the long-term sustainability of the company remains uncertain. Trading has shown promising signs of improvement, with the decline in online sales narrowing to just 11% in August. Physical store sales have also improved in both the 48 currently operating stores and the 141 UK concessions that have reopened.

Despite these improvements, specific figures were not provided, and Quiz Clothing acknowledged that physical store sales are still below last year’s levels. While international sales have also improved compared to the lockdown period, no figures were disclosed. The company faces challenges in the US following its largest customer’s bankruptcy, but it is actively seeking new opportunities in the US market.

Useful Links:
1. Quiz Clothing Official Website
2. BBC News Article on Quiz Clothing’s Sales Impact