British fashion moguls eager to buy Republic

Barely a week after jeans brand Republic collapsed two of the big names in the British retail have emerged as keen bidders to acquire part of the ailing fashion chain´s business. According to ‘This is Money’, Mike Ashley, majority owner

of Sports Direct, and Blue Inc, whose chairman is former Marks & Spencer boss Sir Stuart Rose, are both understood to be considering acquiring Republic.

The likes of 'Financial Times' or 'Sunday Times' have also poised Ashley and Stuart as the most likely candidates to buy a considerable chunk in Republic. By the time being, all parties have declined to comment.

As soon as E&Y was appointed as the administrator, they said it would keep stores trading, with a view to selling the business. As per the company Tweeter feed last entries, where Republic has been punctually informing its clients about the ongoing situation, “Gift vouchers have been suspended while the financial position of the company is being assessed.” “The business is in administration and the website will remain inactive,” they warned their clients.

Fashion chain Blue Inc, is said to be among the first to show interest to snap up about 50 Republic stores out of administration, ‘Business Sales’ reported during the weekend. It is noteworthy the retailer has previously bought business from other fashion retailers that went into administration, such as D2 Jeans in 2012 and a good deal of Officers Club outlets in 2011.

As per the fashion industry's echoes gathered by British media over the past days, Republic's former director Carl Brewins might be also considering making an offer.

On February the 13th, E&Y partners Hunter Kelly, John Sumpton and Alan Hudson were appointed as joint administrators. “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. The impact on cash flows has resulted in the business being unable to continue to operate outside of an insolvency process. Unfortunately, it has been necessary to make 150 employees at the head office in Leeds redundant,” Kelly said in a statement.

Law firm Linklaters is advising the administrators, as well as DLA Piper Leeds. Chris Howard has taken the role for the company’s banks. Meanwhile, Cleary Gottlieb Steen & Hamilton partners Simon Jay and David Billington are acting for TPG, the private equity house which bought Republic in 2010. Finally, US firm Brown Rudnick’s European bankruptcy and restructuring head Louise Verrill is acting in the interest of the company’s management board.