Republic has appointed Ernst & Young as its administrators thereby joining the list of retail failures associated with the post-Christmas season. The company, based in Leeds, has about 2,500 people working in its 121 stores and the Wednesday’s appointment of Ernst & Young has seen the redundancy of 150 staff members who worked the head office. The retail chain is the latest addition to the long list of failures including HMV, Blockbuster, and Jessops with 10,000 being the cumulative number of jobs lost.
An Ernst & Young appointed administrator, Hunter Kelly said that Republic suffered huge losses due to the sudden decline in its sales towards the end of January. Kelly added that the negative impact on the cash flows resulted in the inability of the retail chain to continue its operations beyond the insolvency process. He added that it was necessary to subject the 150 employees to redundancy.
He said that the Republic would continue retailing adding that their brand was well known and that they had a powerful site, owned popular brands, and that they also had a number of profitable and very attractive stores.
Kelly also expressed his immense gratitude for all the support they had been receiving from their esteemed customers and employees during those trying times. He also thanked all those who worked at Republic for all their hard work, dedication, and commitment as the fashion chain continued to trade.