Republic customers to lose 1,2 million pounds in vouchers

Some 78,000 customers of the strained British

fashion retailer Republic that still have gift vouchers to redeem, are set to lose up to 1,2 million pounds. Republic went into administration in February to be bought days after by Sports Direct.

Administrators Ernst & Young have announced they stopped the redemption of Republic gift cards sold before 13 February 2013, deeming the outstanding balance of 1.2 million pounds as an “unsecured claim”.

According to the administrators report´, it is “not the responsibility” of owners Sports Direct to honour the gift cards and means that 78,000 customers will be left empty handed.

In a statement, Ernst & Young said: "Republic is unable to honour gift cards purchased before 13 February 2013. It is also not possible to refund customers for unredeemed balances on gift cards as these payments were made to Republic (Retail) Limited prior to it entering an insolvency process."

The report states that Republic’s debts amounted to 157 million pounds, including 64.4 million pounds to the banking syndicate of Lloyds Banking Group, Investec and TPG Aquatic.

Only 15.3 million pounds is predicted to be raised from the sale of its assets, reported ´The Telegraph’.