Republic's Exeter store remains open while buyer is found

The Leeds-based clothing retailer Republic, which has 121 stores including one in Exeter and one in Plymouth, has announced that it has called in the administrators.

Accountants from Ernst & Young will take over the running of the firm and will keep the stores open while a new buyer is sought. However, 150 staff at the firm's head office in Leeds have been made redundant.

Some have cited the brand's focus on the youth fashion market, which is fiercely competitive and under immense pressure, as the cause of its failure.

A spokesperson from Ernst & Young stated that Republic had suffered poor trading results in the autumn. However, it was apparently the slump in post-Christmas sales that meant the firm was no longer able to pay its bills on time.

Republic is owned by private equity firm TPG, which bought the company in 2010 in a deal thought to be worth about £300m.

Andy Bond, the former chief executive of Asda, quit as Republic's chairman last week as the company brought in KPMG to help it offload some of its stores.

Republic's last tweet said: "Sadly #Republic is now in the hands of Administrators. We did all we could but it's simply too tough out there. Thanks for your support."

Republic stores are currently unable to accept vouchers and the administrators are under no obligation to do so. However, HMV was forced to change its position on not accepting gift vouchers following pressure from senior Tory backbench MP, who accused the retailer's bosses of committing theft.