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February 15, 2022

Fraser Group-invested Studio Retail Group calls in administrators

UK-based online retailer Studio Retail Group, which has Mike Ashley's Frasers Group as its biggest investor, has announced it is appointing administrators.

By Laura Husband

Studio Retail Group, the online fashion, home and electrical retailer based in Lancashire, UK, issued its notice of intent to appoint administrators on the London Stock Exchange on 14 February, following the company’s failed request to get a short-term loan of GBP25m (US$33.85m).

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The notice of intent explains the company has a surplus stockholding which requires additional working capital funding whilst this good quality stock is sold through to customers. 

It states: “The Company requested a short-term loan of GBP25m from its lending banks to fund the surplus stockholding which it believed was sufficient to enable it to sell through the stock to customers. Following detailed discussions with our UK lenders, the company has not been able to reach agreement with them to provide the additional funding studio requires.”

The statement explains the board intends to file a notice to appoint administrators to SRG and Studio Retail Limited, its wholly owned subsidiary, “as soon as reasonably practicable” and says the action is being taken to protect the interests of its creditors.

The company has requested the listing of its ordinary shares of 10 pence each to be temporarily suspended from 7:30am on 14 February following a consultation with the Financial Conduct Authority (FCA).

When contacted by Just Style today, Studio Retail Group said it had nothing to add beyond the announcement released.

According to a report in the BBC, the company issued its second profit warning in two months in January after being affected by transport delays and increased shipping costs.

The report also explains the group’s biggest shareholder is Mike Ashley’s Frasers Group, which holds a stake of about 29%, following an attempt to take over the company in 2019.

Ashley made a similar attempt with UK retailer Debenhams in 2019 when as the largest shareholder, he called for a general meeting to appoint him to the board and remove its existing board members.

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Free Report
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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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