Young fashion retailer Republic’s future is in doubt after landlords failed to agree to Mike Ashley’s demands on property terms.
Drapers’ sister title Retail Week understands that between 50-60% of landlords agreed to new terms proposed by Ashley’s Sports Direct, down on the 75% stipulated by the retailer.
In April Sports Direct, which acquired Republic out of administration in February, wrote to landlords threatening to close Republic stores unless 75% of property owners agree to new terms by 5pm on May 31.
However, sources told Retail Week that the proportion of landlords willing to agree to the new terms has fallen far short of that demanded by Sports Dircet chief executive Dave Forsey.
It is thought Sports Direct is now “weighing up its options” over the future of Republic, and could still opt to close the whole business down.
Last week it was reported that landlords remained divided over any decision. One claimed that the landlord community did not want to be “beaten around” by Ashley.
CBRE is advising Sports Direct on the process.
Both Sports Direct and CBRE declined to comment.