Republic are the latest high street name to bite the dust

The high street fashion chain Republic has officially fallen into administration placing approximately 2,500 jobs at risk. Ernst & Young has been appointed as the administrators for the ailing fashion store that is now considered a post-Christmas failure. Based in Leeds, Republic has 121 stores and is estimated to employ about 2,500 people. On Wednesday the company announced that it would enter administration and immediately cut 150 staff from its head office.

Republic is just the latest of a series of large companies that has folded after the completion of the holiday season including HMV, Jessops, and Blockbuster. Ernest & Young administrator, Hunter Kelly, explained that Republic suffered from a rapid and sudden decline in their sales towards the end of January. He went on to say that this seriously hurt their cash flow and made it impossible for the business to continue to operate without starting an insolvency process.

Kelly continued to say that Republic will be able to trade with the eventual goal of selling the business as their top concern. He said that since Republic is well known in the North they hope that finding a buyer will not be too difficult. This is added by the fact that some of their stores are still profitable and attractive to potential buyers.

As of Wednesday the brand was still offering vouchers; which is odd since some retailers often stop taking them as soon as the company falls into administration. In fact, HMV was forced to accept vouchers after Tory MP Sir Tony Baldry accused the chain of theft for their decision not to take the vouchers.

Kelly said that throughout the administration E&Y and Republic are very grateful for the support of customers and employees and want to thank everyone at the company as they remain open for trade.