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USC put into administration and sold to Republic

Sports Direct’s young fashion chain USC has been put into administration and bought by another of Sports Direct’s fascias, Republic.

Philip Duffy and Geoffrey Bouchier, managing directors of insolvency firm Duff & Phelps, were appointed joint administrators of West Coast Capital (USC) on January 13, together with Robert Palmer of the Gallagher Partnership.

Following the administration Duff & Phelps completed a going concern sale of the business and assets of USC’s stores to Republic.com Retail Limited. All stores and staff working within them have been retained and are continuing to trade.

Philip Duffy, managing director of Duff & Phelps said: “West Coast Capital (USC) Limited underwent a very successful financial restructuring process and sale; this leaves the business in a stronger position to carry on trading. We are pleased that following the process all stores continue to trade.”

The deal is believed to effect 28 USC stores. Sports Direct has around 90 USC stores, with over 1,000 employees.

As reported by Drapers last week, Sports Direct’s directors filed a notice of intention to appoint administrators to USC at the High Court on January 6.

The decision to file with the High Court’s Chancery Division was reportedly prompted by a demand from Diesel for unpaid debts.

Readers' comments (12)

  • darren hoggett

    And what happens to USC's creditors such as Diesel? If they get shafted - as I suspect they will - then I hope they don't entertain the new owners.

    This is legalised Fraud.

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  • Sounds familiar... See http://www.usc.co.uk/pages/republic

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  • USC and Republic - Welcome to the British Leyland of the clothing Industry.

    Suppliers - Don't say you haven't been warned!

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  • You would think suppliers would adopt a "once bitten twice shy" attitude but that's not always the case. No doubt they will get bitten again.
    This pre pack malarkey is shocking. They should be made to pay all creditors or not sell it on at all.

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  • This deal absolutely stinks. I hope Drapers takes a dim view on this and is prepared to ruffle a few feathers.

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  • Wow ,oh to be so clever. Let's wait and see who gets paid as they have to continue trading and need branded suppliers! Could only happen in Britain. Rangers one minute, clothing the next, what a man!!
    Glad all the staff are safe now lets see the creditors join them.

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  • This shouldn't be legal. Such a con

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  • How can this be legal??? Even if it is legal, Mike Ashley's moral conscience should have prevented this. Oh yes - what moral conscience?
    I really hope more brands start to take the Adidas approach to all of the Sports Direct businesses and seriously restrict the kind of product they are willing to supply or stop supplying all together. There is really nothing that would make me want to trade with any Sports Direct business under any circumstances - they will ruin your brand in the end, think very carefully before getting in bed with this lot!

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  • This type of sale should be did at arms length, not bought by the same person! They should be made to pay all creditors or not sell it on at all.

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  • darren hoggett

    Will Drapers make a stand here? This type of outcome deserves a lot of criticism and I hope Drapers will do a proper report that is prepared to upset a few people.

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