SHARES in Quiz Clothing dipped nearly three per cent after the retailer said it would make a provision of £400,000 in its accounts for the six months to September 30 linked to its exposure to House of Fraser stores.
House of Fraser was acquired by Mike Ashley’s Sports Direct in a “pre-pack” deal from the department store chain’s administrators in August.
Quiz said that its non-executive chairman, Peter Cowgill, would tell investors at its annual meeting in London yesterday that, further to House of Fraser going into administration and selected assets being acquired by Sports Direct, the company will make the £400,000 provision in relation to “outstanding debtor balances and other potential costs”.
Mr Cowgill said in the statement that Quiz has historically operated 11 House of Fraser concessions and sold its products through its website. A spokeswoman later said the concessions remain open and that Quiz expects them to continue trading.
Mr Cowgill said that the company’s 71 standalone and 147 concessions in the UK have performed well in the financial year to date, despite the softening of trade in April which it previously reported.
He said Quiz was pleased with the response to its summer product range. And he noted that it was “generating stronger growth” on its own websites compared with third-party websites which “experienced exceptional growth last year” after launching partnerships with Zalando and Next.
Mr Cowgill, executive chairman of JD Sports, said Quiz remains positioned for further strong growth” despite the uncertain trading backdrop.
All resolutions proposed at the annual meeting were passed. Shares closed down 4.75p at 162.75p.
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