Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Republic stores under threat as Sports Direct reviews terms

Young fashion chain Republic’s stores may close by the end of June unless 75% of landlords agree to new terms.

In a letter seen by Drapers’ sister magazine Retail Week and sent last night, Sports Direct chief executive Dave Forsey outlined improved terms for landlords from those the sports giant demanded in March, but warned the support of a majority of landlords is essential if the Republic format is to have a future.

In March - a month after acquiring the chain out of administration - Sports Direct asked landlords to accept Republic rents based on 15% of the store’s turnover.

However, sources told Retail Week that as a result of landlords unwillingness to comply to the deal, Sports Direct has come back with better terms, which include it paying the higher of either half the current passing rent, or a sum equal to 15% of turnover for each store to cover rent, rates and service charge.

Forsey wrote: “We have received an encouraging response from landlords accepting our offer of rent, rates and service charge at 15% of turnover for each store. However, following feedback, we are now revising our proposal.”

Forsey cautioned that landlord compliance on terms - including a three-month break clause and monthly rents - is essential.

He wrote: “The new Republic format relies on the leading branded suppliers viewing it as a viable proposition. Therefore, circa 75% of all landlords across the Republic portfolio must agree to the above proposal, otherwise we will have no other option but to close the stores prior to the June quarter day.”

Sports Direct could not be reached at the time of writing.

Readers' comments (4)

  • Why should Sports Direct write their own terms? - Discuss

    Unsuitable or offensive? Report this comment

  • Republic was royally ******..,,

    Waste of £12m

    Unsuitable or offensive? Report this comment

  • What else are the landlords going to do with their premises except rent to a charity so they don't have to pay the rates.

    If I had the power I'd ask for 15% too!!!!
    15% rent
    5% utilities
    10% staff
    50% gross margin leaves 20% profit for me thanks very much.

    Unsuitable or offensive? Report this comment

  • Mike puts the screws on the landlords, about time if you ask me, landlords have had it too good for too long.....empty store or filled store its as simple as that!

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.