Republic chain sell-off to US venture capitalist

TPG, the Texas-based private equity giant, is buying the Leeds-based business from Change Capital Partners, which backed the 105m management buyout in 2005.

The deal is expected to result in multi-million-pound payouts to Tim Whitworth and Carl Brewins, the management team and co-founders, although they are said to be "substantially" reinvesting in the business.

They held a stake of around 40 per cent following the MBO in 2005.

The deal also represents success for Change Capital Partners, led by Luc Vandevelde and Roger Holmes, the former chairman and chief executive of Marks & Spencer.

Republic was founded in Leeds in 1986. Mr Whitworth joined the business as a Saturday worker in 1989. 3i, the listed private equity firm, bought a minority stake in the business in 2004, investing 15m in equity and debt.

Republic is now a multi-channel retailer with 105 stores, 2,500 employees and a turnover of more than 200m.

It sells brands including G-Star, Miso, Firetrap, Bench and Diesel.

The Yorkshire Post reported in April that the company had appointed Rothschild, the corporate financier, to advise on future options for the business.

Mr Whitworth said earlier this year: "Our unique 'house-of-brands' model and fashion credentials set us clearly apart from the competition.

"We partner with the best brands and teams in our market and believe we are excellently positioned to continue our exceptional growth."

The 38-year-old was named retail entrepreneur of the year in Ernst & Young's Northern business awards last week. Judges described him as a "natural born retailer".

A spokeswoman for Change Capital Partners declined to comment and TPG could not be reached for comment.