Fashion chain Quiz is placing the division that runs its 82 standalone stores into administration as part of a restructure to offload loss-making outlets and slash its rent bill.
The group said 822 of the 915 staff affected by the decision will remain with the group but that 93 jobs are at risk.
Quiz will look to buy back the stock and some of the assets from the Kast division placed in administration for £1.3 million so it can try to renegotiate better rents with landlords on some of the stores with a view to keeping them open.
It did not disclose how many stores it would be looking to retain as part of the deal.
READ MORE: Stuart Patrick: Politics are irrelevant to business owners who need solutions to ensure firms survive
A small number of job losses are expected across its head office in Glasgow and distribution centre in Bellshill near Glasgow, with others at risk depending on negotiations with landlords.
Quiz said its concessions and international operations are unaffected by the move.
Tarak Ramzan, chief executive of Quiz, said: "It is with deep sadness and regret for some of our colleagues and partners that we had to take this decision to restructure the group's operations."
He added: "Whilst we have taken pro-active actions over the past 18 months to drive footfall to our stores and renegotiate leases to improve performance, the significant economic uncertainty we now face as consumers and businesses emerge from the Covid-19 pandemic has meant that, in order to ensure a sustainable future for the group, we have taken this decision to place the subsidiary which operates our stores into administration.
"We continue to believe that stores, with appropriate property costs and flexible lease terms, can continue to be a relevant pillar in our omni-channel model and we will be seeking to re-open Quiz stores where we believe it is prudent and economic to do so."
Quiz, which will appoint administrators KPMG to the division on Wednesday, said while the shop chain had been loss-making, it continues to see a future for an "economically viable store portfolio" alongside its online business, concessions and international arm.
It said woes at the stores business have been compounded by the lockdown, which forced the closure of all non-essential shops in the UK since late March.
The announcement comes after a tough period for Quiz, which has suffered sliding high street sales and losses due to tough retail conditions.
Retail experts have been questioning the future of Quiz in recent months as the chain battled against sliding sales and dwindling numbers of shoppers on the high street.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article