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| Version 1 | Version 2 |
|---|---|
| Republic chain enters administration | Republic chain enters administration |
| (about 3 hours later) | |
| Clothing chain Republic has confirmed widespread fears, announcing that it has called in the administrators. | Clothing chain Republic has confirmed widespread fears, announcing that it has called in the administrators. |
| The Leeds-based retailer, which has 121 stores and about 2,500 staff, said it had appointed accountants from Ernst & Young to take over running of the firm. | The Leeds-based retailer, which has 121 stores and about 2,500 staff, said it had appointed accountants from Ernst & Young to take over running of the firm. |
| The administrators said they had already made 150 staff at the firm's head office in Leeds redundant. | The administrators said they had already made 150 staff at the firm's head office in Leeds redundant. |
| Republic will continue to be open for business, with administrators hoping to sell it as a going concern. | Republic will continue to be open for business, with administrators hoping to sell it as a going concern. |
| "The brand Republic is well recognised, particularly in the North," said Hunter Kelly, one of the newly-appointed administrators. | "The brand Republic is well recognised, particularly in the North," said Hunter Kelly, one of the newly-appointed administrators. |
| "It has a powerful website offering, owns well-known brand names, and has some very attractive and profitable stores." | "It has a powerful website offering, owns well-known brand names, and has some very attractive and profitable stores." |
| Hard hit demographic | Hard hit demographic |
| Founded in 1986, as men's denim retailer in Leeds under the name Best Jeans, Republic underwent a rapid expansion 10 years ago, but has since seen sales slacken off. | Founded in 1986, as men's denim retailer in Leeds under the name Best Jeans, Republic underwent a rapid expansion 10 years ago, but has since seen sales slacken off. |
| "Republic suffered poor trading results in the autumn, and whilst sales picked up in December there has been a sudden and rapid decline in sales in late January," said Mr Kelly. | "Republic suffered poor trading results in the autumn, and whilst sales picked up in December there has been a sudden and rapid decline in sales in late January," said Mr Kelly. |
| That slump in sales caused a drain in cash that meant the retailer could no longer pay its bills on time. | That slump in sales caused a drain in cash that meant the retailer could no longer pay its bills on time. |
| The company focuses on the youth fashion market, which is fiercely competitive and under pressure, offering brands such as Jack & Jones and SoulCal. | The company focuses on the youth fashion market, which is fiercely competitive and under pressure, offering brands such as Jack & Jones and SoulCal. |
| "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. | "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. | "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. | "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. |
| 'Worst' post-Christmas period | 'Worst' post-Christmas period |
| Republic is following in the footsteps of a list of High Street stalwarts. | Republic is following in the footsteps 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. |
| Administrators at Blockbuster announced on Wednesday that they would shut a further 164 stores at the DVD rental chain, adding to the 160 closures already announced, and leaving only 204 still open. | |
| "It's the worst post-Christmas period we've seen in a long time," said Matthew Hopkinson from the Local Data Company. | "It's the worst post-Christmas period we've seen in a long time," said Matthew Hopkinson from the Local Data Company. |
| Republic is owned by private equity firm TPG, which bought the company in 2010 in a deal thought to be worth about £300m. | Republic is owned by private equity firm TPG, which 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. | According to Anusha Couttigane, TPG had been trying to sell off some stores and persuade landlords to agree to lower rents. |
| "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," she said. | "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," she said. |
| Matthew Hopkinson said that while some stores may be snapped up, the vast majority of them are in shopping centres, which would be difficult to fill. | Matthew Hopkinson said that while some stores may be snapped up, the vast majority of them are in shopping centres, which would be difficult to fill. |
| "HMV and others have also been sitting in shopping centres and therefore I think the number of units which have gone in the last few months in shopping centres will make it far harder than 12 months to refill them," he said. | "HMV and others have also been sitting in shopping centres and therefore I think the number of units which have gone in the last few months in shopping centres will make it far harder than 12 months to refill them," he said. |
| 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. | Its current chief executive is the former boss of TK Maxx, Paul Sweetenham. |