Fashion Chain Republic On Brink Of Administration - 1,000 Jobs At Risk Across 121 Stores

Fashion Chain Republic On Brink Of Administration

Another high street retailer is set to bite the dust after sources confirmed to the Huffington Post UK that fashion chain Republic is set to go into administration later this week.

Around 1,000 jobs are at risk at the chain, which has 121 stores across the country.

The retailer, which is owned by private equity group TPG, has been hit by poor trading over recent months, hit like so many others by sluggish consumer confidence and weakness in the young fashion market.

Last week, KPMG was revealed to have been brought in to advise the company on shedding some of its stores, and Andy Bond, the former chief executive of Asda, was stepping down as chairman, according to the FT.

But the Huffington Post UK understands Ernst & Young, another of the big city accounting firms, has been lined up as administrator for the stricken firm.

Reaction to the news on Twitter was one of sadness:

Nick Hood, business analyst at Company Watch, told HuffPost UK: "A poor Christmas was the last straw, and like so many retailers burdened with too many bricks and mortar stores, the cost of slimming down and offering a better online facility proved too much.

"This is the latest, but unlikely to be the last, retail victim this side of the next rent quarter demand, due in March."

Republic is not the only fashion retailer to be private-equity owned which has fallen on hard times; La Senza briefly fell into administration in 2012 - the lingerie chain was owned by Lion Capital.

"Republic's position can't have been helped by the obscure financial structure, which made it difficult for landlords and suppliers to work out its financial position," Hood added.

Close

What's Hot