Private equity players circle Republic

Greg Gille
@unquotenews
15 February 2013

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The founder of fashion chain Republic, which went into administration earlier this week, is considering teaming up with a private equity buyers to rescue the business, according to reports.

Founder Carl Brewins, who left the business last year, is reportedly planning a bid with an unnamed private equity backer.

Other private equity players have got Republic in their sights though, with Jon Moulton's Better Capital and Apollo both rumoured to be considering a move on the business. Blue Inc, a fashion chain chaired by former Marks & Spencer executive chairman Stuart Rose, is also tipped as a potential buyer.

Republic, owned by TPG Capital, appointed Ernst & Young as its administrator earlier this week. TPG acquired the business in June 2010 for £300m from Change Capital Partners. Prior to Change Capital Partners, Republic was owned by 3i.

Republic is a Leeds-based fashion retailer with 121 outlets across the UK. In 2009, the company recorded £200m in revenues with a £30m EBITDA. But the company's profits slumped by 86% in 2011, falling to £3.7m.