Fashion chain Quiz has agreed two months' breathing space with its bank after agreeing an extension of its banking facility from £1.75 million to £3.50 million.
The deal with HSBC, which expires at the end of October, comes two months after the struggling Glasgow-based company put Kast Retail, the subsidiary that ran its shops, into administration, closed 11 stores and cut 93 jobs.
Before Covid forced the closure of stores for three months, Quiz had issued a series of profit warnings last year amid plunging sales at its physical stores. It has been trading online since mid-April.
Its new banking arrangements comprise an overdraft facility of £2 million and working capital of £1.5 million, both of which will remain in place until the end of October, with no financial covenants.
Quiz, which operates its online sales operation from a distribution centre in Bellshill, said that at August 13 the group had net cash of £5.7 million.
In July, the firm launched an investigation into Leicester-based suppliers that were accused of breaching National Minimum Wages laws.
