Around 200 jobs could be at risk after a popular high street fashion outlet called in administrators.
Quiz Clothing could be forced to close 23 of its branches just weeks after shares in the company were removed from the London Stock Exchange.
The struggling retailer is expected to use a pre-pack administration deal to allow the founders to regain control of a slimmed down version of the business, The Sun reported.
Remaining assets will then be acquired by Orion Retail, a subsidiary of the company Zandra which was controlled by the founding Ramzan family.
Orion will then take over 42 of the outlets which had been occupied by Zandra.
The company has appointed the insolvency practitioner Teneo as administrator.
Around 1,500 people currently work for the company across 60 stores in the UK.
But 200 of those employees could face job losses, Sky News reported.
Sheraz Ramzan, CEO of QUIZ said: ‘The Board took the difficult decision to appoint administrators to Zandra Retail Limited in light of the continuing challenging trading conditions impacting the Group’s performance.
‘We are deeply sorry to those affected by the store closures, including our retail colleagues.
‘However, this decision will put the business in a more sustainable footing for the future and protect several hundred jobs as a result.’
Last month it was reported that the company would bring administrators in after its market capitalisation fell to £3.6million.
Market capitalisation represents the value of a publicly traded company’s outstanding shares of stock.
Quiz Clothing closed one of its branches in Peterborough yesterday
It comes as a number of high street stores are facing an uncertain future.
WHSmith confirmed last month that it has held talks over potentially selling its 500-strong high street store business.
The company said it is assessing options for the division as it seeks to focus on its larger travel operation.
It is understood private equity groups Hilco and Alteri are among parties to raise interest over a possible takeover move for the business, after WH Smith launched the process late last year.
Both Hilco and Alteri have experience in UK retail as turnaround specialists.
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