diff --git a/rhodecode/lib/utils.py b/rhodecode/lib/utils.py
--- a/rhodecode/lib/utils.py
+++ b/rhodecode/lib/utils.py
@@ -29,15 +29,17 @@ import os
 import logging
 import datetime
 import traceback
+import paste
+import beaker
+
+from paste.script.command import Command, BadCommand
 
 from UserDict import DictMixin
 
 from mercurial import ui, config, hg
 from mercurial.error import RepoError
 
-import paste
-import beaker
-from paste.script.command import Command, BadCommand
+from webhelpers.text import collapse, remove_formatting, strip_tags
 
 from vcs.backends.base import BaseChangeset
 from vcs.utils.lazy import LazyProperty
@@ -51,6 +53,38 @@ from rhodecode.model.user import UserMod
 log = logging.getLogger(__name__)
 
 
+def recursive_replace(str, replace=' '):
+    """Recursive replace of given sign to just one instance
+    
+    :param str: given string
+    :param replace: char to find and replace multiple instances
+        
+    Examples::
+    >>> recursive_replace("Mighty---Mighty-Bo--sstones",'-')
+    'Mighty-Mighty-Bo-sstones'
+    """
+
+    if str.find(replace * 2) == -1:
+        return str
+    else:
+        str = str.replace(replace * 2, replace)
+        return recursive_replace(str, replace)
+
+def repo_name_slug(value):
+    """Return slug of name of repository
+    This function is called on each creation/modification
+    of repository to prevent bad names in repo
+    """
+
+    slug = remove_formatting(value)
+    slug = strip_tags(slug)
+
+    for c in """=[]\;'"<>,/~!@#$%^&*()+{}|: """:
+        slug = slug.replace(c, '-')
+    slug = recursive_replace(slug, '-')
+    slug = collapse(slug, '-')
+    return slug
+
 def get_repo_slug(request):
     return request.environ['pylons.routes_dict'].get('repo_name')