|More Jobs at Risk as Republic Goes into Administration|
But Westfield branch of HMV escapes the axe
More local jobs are at risk today as fashion chain Republic, which has a store in Westfield in Shepherd's Bush becomes the latest high street chain to colleapse into administration.
Republic is the fourth large retail chain to fall into administration in 2013, following Jessops, HMV and Blockbuster. The retailer has reportedly lined up Ernst and Young to handle administration of the chain, which has around 120 stores and 2,500 staff.
Hunter Kelly, one of the administrators appointed by Ernst and Young, said Republic had suffered from a "very 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," he said.
However, he added that Republic would continue to trade "with a view to selling the business as a going concern".
"The brand Republic is well recognised, particularly in the north. It has a powerful website offering, owns well-known brand names, and has some very attractive and profitable stores," he said.
"We are grateful for the continued support of all employees and customers during this time, and would like to thank everyone at Republic for their commitment and hard work as the business continues to trade."
There is better news for staff at Westfield's branch of HMV which appears to have escaped the axe. It is not listed among 66 stores across the country which are being closed down down by administrators, with 930 employees being made redundant.
In fact four stores in London are due to close imminently, including the neighbouring branch in Fulham Broadway, which already has the Closing Down signs up, and Wandsworth's Southside Centre.
The closures come after restructuring group Hilco took over HMV's debts and began streamlining the retail chain.
after restructuring group Hilco took over HMV's debts and began streamlining the retail chain.
Making the announcement, joint administrator Nick Edwards said: "As part of our ongoing review of HMV's financial position, we have now completed a review of the store portfolio and have identified 66 loss-making stores for closure. This step has been taken in order to enhance the prospects of securing the business' future as a going concern. "
" We also sincerely thank our customers in these locations for their valued support and we hope you will continue to shop at HMV."
February 12, 2013