Sports Direct gains the race to acquire Republic assets

Mike Ashley has won the pulse with other allegedly potential candidates to acquire Republic, as Sports Direct International, its sports retail chain, has just announced the acquisition of 114 Republic stores, all the stock in the business,

and other assets and brands from the retailer that entered administration earlier in February.

Sports Direct International, the sports retailer controlled by Newcastle United FC owner Mike Ashley, has nailed a deal to acquire main assets from the fashion retailer Republic out of administration. The deal has saved 2,100 jobs, reported 'The Telegraph'.

The operation has won the race to acquire the ailing retailer for Ashley, who has been competing until now with other supposed candidates to acquire Republic, such as fashion chain Blue Inc, said to be among the first to show interest to snap up about 50 Republic stores out of administration, as ‘Business Sales’ reported earlier in February. Third name posed to be interested in becoming Republic new owner was the fashion retailer's former director Carl Brewins.

The company told the Stock Exchange it has agreed to buy some bits of the business, assets and brands from the administrators of fashion retailer, Republic (UK) Ltd and Republic (Retail) Ltd, published local media. According to Reuters, Sports Direct will acquire 114 Republic stores, substantially all of the stock in the business as well as Republic's website and own brands, including SoulCal, Fabric and Crafted.

Commenting the news, joint administrator Hunter Kelly said: "In what has been a very challenging time and volatile climate for retailers, it is particularly pleasing to have completed the successful sale of Republic (Retail) Ltd, saving 2,100 jobs across the UK high street and at its Leeds-based headquarters. The brand Republic is well recognised and well respected by customers for offering quality, high fashion goods and it is a testament to its strength that Sports Direct has made this investment to secure its future and high street presence."

Kelly added that they "are extremely grateful for the support and loyalty showed by all employees and customers during what has been an uncertain time, and would like to thank everyone at Republic for their commitment and hard work during the Administration process."

Republic was previously owned by private equity firm TPG, which bought the company in 2010 in a deal thought to be worth circa 300 million pounds. As reported by the BBC, analysts have criticised Republic's fast-paced expansion over recent years, saying that TPG should have instead concentrated on boosting its profitability.

Earlier this week, Mike Ashley sold 100 million pounds worth of shares in Sports Direct, reducing his stake in the company he founded in a 4 percent yet remaining as the major investor with 64 percent of the whole.