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| Republic chain faces administration | Republic chain faces administration |
| (about 2 hours later) | |
| Fears are growing for the future of clothing chain Republic. | |
| Sources say the Leeds-based retailer, which has around 120 stores and employs some 1,000 staff, is poised to enter administration. | Sources say the Leeds-based retailer, which has around 120 stores and employs some 1,000 staff, is poised to enter administration. |
| After undergoing rapid expansion about 10 years ago, it has since seen sales slacken off. | After undergoing rapid expansion about 10 years ago, it has since seen sales slacken off. |
| The group is reported to have already lined up the business services firm Ernst & Young to handle the administration. | The group is reported to have already lined up the business services firm Ernst & Young to handle the administration. |
| The company focuses on the youth fashion market, which is fiercely competitive and under pressure. | The company focuses on the youth fashion market, which is fiercely competitive and under pressure. |
| "Operating towards the value end of the market should have placed the retailer in a strong position to take advantage of the consumer trend towards low-cost fashion," said Anusha Couttigane, from retail consultancy Conlumino. | |
| "However, its target youth market has been the hardest hit demographic of the recession and it has struggled to appeal to them as effectively as rivals such as Primark, Asos or H&M. | |
| "Fashion is a fast-moving industry where brand loyalty is fickle and Republic has failed to keep up with some pretty fierce competitors." she said. | |
| If Republic does appoint administrators, it will be following in the footstep of a list of High Street stalwarts. | |
| These include the music retailer HMV, the camera group Jessops and the DVD and games rental company, Blockbuster. | These include the music retailer HMV, the camera group Jessops and the DVD and games rental company, Blockbuster. |
| Republic is owned by the private equity firm TPG, run by former Marks and Spencer executives Luc Vandevelde and Roger Holmes. | |
| TPG bought the company in 2010 in a deal thought to be worth about £300m. | |
| According to Anusha Couttigane, TPG had been trying to sell off some stores and persuade landlords to agree to lower rents. | |
| "In light of this, news of its administration suggests that attempts to renegotiate monthly payments have failed, bringing the business to a complete standstill and landlords facing the prospect of more vacant units on the High Street." | |
| Republic began selling denim clothing in Leeds in 1986 and since then has grown to supply both men and women with clothing brands including G-Star, Diesel and Firetrap. | |
| Its chairman, Andy Bond, who was a former boss of Asda, is said to have left the company last week after two years. | Its chairman, Andy Bond, who was a former boss of Asda, is said to have left the company last week after two years. |
| Its current chief executive is the former boss of TK Maxx, Paul Sweetenham. |