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E&Y steps in as fashion chain Republic folds

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13th Feb 2013
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Fashion outlet Republic has become the latest victim on the high street today as the chain collapsed into administration and Ernst & Young stepped in.

The insolvency follows a worrying trend that has seen major retailers such as HMV, Jessops and Blockbuster collapse in the last month alone.

Administrators at Ernst & Young have taken over the running of the firm and have already made 150 staff at the firm's Leeds headquarters redundant.

The clothing chain, which includes121 stores and 2,500 staff, will continue to be open for business with E&Y hoping to sell it as a going concern.

Republic was founded in in Leeds in 1986 under the name Best Jeans and underwent a rapid expansion around a decade ago. In June 2010 private equity firm TPG (Texas Pacific Group) bought Republic in a deal worth £300m and in which the founders retained a significant stake.

In recent years sales have slackened off. E&Y partner and administrator Hunter Kelly said: “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.”

This caused a drain in cash which meant the retailer could no longer pay its bills on time.

Kelly added: “The brand Republic is well recognised, particularly in the North. It has a powerful website offering, owns well-known brand names and has some very attractive and profitable stores."

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