Fri, 01 Mar 2013 | ADMINISTRATION
Sports Direct has rescued Republic out of administration, taking on 116 stores, the head office and saving over 2,100 jobs.
The deal, which has been agreed for an undisclosed sum, will safeguard the future of the Republic brand, and includes all of Republic’s stock, and additional brands SoulCal, Fabric and Crafted.
Founded in 1986 with the brand name Best Jeans, Republic had 121 outlets and a 2,500-strong workforce when it entered administration after suffering poor trading.
After being purchased by TPG in 2010 Republic was pushed through a time of rapid expansion, resulting in high rent bills compounded by the reduced spending power of young people in the recession. The new owners should have focused on improving its profitability instead industry analysts have said.
Hunter Kelly, the joint administrator at Ernst & Young, commented: “The brand Republic is well recognised and well respected by customers for offering quality, high-fashion goods and it is a testament to its strength that Sports Direct has made this investment to secure its future and High Street presence.
“We are extremely grateful for the support and loyalty showed by all employees and customers during what has been an uncertain time, and would like to thank everyone at Republic for their commitment and hard work during the administration process.”
Sports Direct has made several acquisitions in recent years. It bought an 80 per cent holding in the fashion retailers Cruise and USC to create its own lifestyle division. Sports Direct has also bought Flannels, a small chain of boutique shops in the North of England, the Firetrap and Golddigga brands, and JJB Sports’ stock and 20 stores when it entered administration last year.
These purchases are taking Mike Ashley’s business in a new more fashion-orientated direction. Ashley has sold £100 million of Sports Direct shares this week accounting for 4 per cent of the company.
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