Fashion chain Republic poised for administration
The first company to go into administration in 2013 was camera retailer Jessops, with entertainment stores HMV and Blockbuster following quickly behind. With over 10,000 jobs already lost in the second month of the year alone, fashion has been unbelievably lucky to remain unscathed. Until now, that is.
Just this week it was announced fashion chain Republic may be entering administration, and with around 120 stores to the company’s name, there are fears their 1,600 staff will be made unemployed. According to reports, the group have already appointed business firm Ernst & Young to handle the administration.
Founded in Leeds in 1986, Republic had humble beginnings, with founder Tim Whitworth originally selling clothes as a Saturday boy on a market stall. The business grew, and years later turned into one that stocked brands such as Diesel, Lipsy and French Connection alongside its own. In 2010 business was booming for Republic, as American firm TPG bought the clothing retailer for an estimated £300m. However, after last Christmas, sales started to fall, with customers turning to both high street and online rivals.
But there is a slim hope for Republic, as companies such as sportswear group, Sports Direct, may join rivals in looking to adopt a smaller version of the retailer out of administration.