Quiz takes House of Fraser hit
Mike Ashley’s group took over House of Fraser for £90m.
Retailer Quiz has warned that it will take a £400,000 hit from House of Fraser’s collapse.
The womenswear firm said in a stock market update that the department store chain’s administration and subsequent takeover by Mike Ashley’s Sports Direct has resulted in outstanding debtor balances and other potential costs.
“Quiz has historically operated 11 House of Fraser concessions and sold its products through the House of Fraser website.
“Further to House of Fraser’s entry into administration and the selective acquisition of assets by Sports Direct International, the group is expecting to provide £0.4 million in the six months to September 30 2018 in relation to outstanding debtor balances and other potential costs.”
Mr Ashley’s takeover of House of Fraser for £90 million resulted in a host of suppliers and partners to the retailer being left out of pocket.
However Quiz, which listed on London’s junior AIM market last year, added that it has seen continued growth off the back of a strong summer.
Stores and concessions have performed well in the year to date, despite softer footfall during April, the firm said.
Quiz opened two new standalone stores during the period, in the Bluewater shopping centre in Kent and in Oxford.
Quiz said that it is on track to deliver market expectations for the full year.
The fast fashion brand saw revenue rise from £89.8 million to £116.4 million last year, while pre-tax profit grew nearly 5% to £8.5 million.
It said sales growth was driven by all of its channels, including online which saw revenue jump 158% to £30.6 million.