Fashion chain Republic collapsed into administration today, putting 2500 jobs at risk and marking a major failure for US private-equity giant TPG.
Accountancy firm Ernst & Young was appointed as administrator at Republic, which has 121 stores and was acquired for £300 million by TPG in 2010. E&Y immediately made 150 staff at the retailer’s head office in Leeds redundant.
E&Y’s Hunter Kelly said: “Republic suffered poor trading results in the autumn, and while sales picked up in December, there has been a sudden and rapid decline in late January. The impact on cash flows has resulted in the business being unable to continue to operate outside of an insolvency process.”
The news came as Deloitte confirmed that it plans to close another 164 Blockbuster stores, leaving 800 workers facing redundancy.
Blockbuster went into administration last month. The retailer had struggled to adapt to the changing market and rivalry from internet retailers.
There were 528 stores when the firm went into administration — just 204 now remain.
