Fri, 15 Feb 2013 | BUSINESS NEWS
Stricken retail chain Republic, which was put into administration earlier this week, has launched a sale, cutting the price of all stock by between ten and 20 per cent.
Confirmation of the discount was given by the staff, while the company tweeted from its official account: Republic Massive Clearance Sale now on! #republicsale
The sale is taking place over the weekend, giving administrators time to assess the performance of the company and its stores. This means that for the time being all 123 shops will continue to trade, 121 of which are in the UK and the remaining two in Ireland.
While the shops themselves are continuing to trade, Hunter Kelly, a specialist in corporate restructuring with administrators Ernst and Young, told the Business Sale Report that staff at the head office are being scaled down from 200 to 50.
Mr Kelly confirmed with us that the administrators are initially looking to sell the brand name, goodwill and the business assets of Republic, including all the stores - as a package. Although this is a preferred result, it is unlikely that a white knight will be found at this stage. What is very likely is that tranches of the better performing stores will be sold off to the highest bidder or bidders and a separate deal may well be struck for the brand and online rights. It is understood that several private equity groups are already circling and will be paying close attention to store-by-store results from the sale being run over the weekend.
In the meantime, retail restructuring experts from Gordon Brothers have been drafted in by Ernst & Young to advise on in-store strategy.
While the stock is discounted, administrators from Ernst and Young have explained that Republic is no longer accepting gift cards and vouchers in return for sales. This will remain the case until the financial position of the company is finalised.
Republic's financial figures showed a drop of 85 per cent between the year to the end of January 2011 and the same period in 2012. Pre-tax profits of £3.7 million and sales of £177 million were recorded in the year to 29 January 2012.
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Related news:
Republic set to be next high street business in administration
Blue Inc moves in on rival Republic sale
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