Republic brings in Rothschild to assess sale options

Fashion retailer Republic has brought in investment bank Rothschild to assess its sale options to include a sale, refinancing or listing.

The owners, private equity firm Change Capital Partners, want to determine the best method to profit from the majority stake it acquired five years ago.

The retailer, which sells the Diesel and G-Star brands among others, was valued at £105m in 2005, and is thought to have doubled or even tripled in value since then, thanks to its rapid expansion.

Republic's number of shops has grown to 100, 30 stores more than it had in 2005, and has plans to launch another 15 stores this year, which would create 500 jobs.

The group is expected to attract significant interest from buyers as it has little debt, and could triple in size again. Its website is the biggest multi-brand clothing retail site after Asos.com.

Its success during the recession is down to its younger customers' use of student loans and funding from parents, which has sustained their rate of spend, say retailers JD Sports and Jack Wilis, whereas older consumers have reduced the money they spend on clothing.

Founders Tim Whitworth and Carl Brewins have retained 40 per cent of Republic between them, and are thought likely to remain at the helm of the company.

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