In a filing to the London Stock Exchange, Frasers Group says it has acquired certain assets of Studio Retail Group Plc (SRG) and its main operating company Studio Retail Limited (SLRL) in a GBP26.8m (US$35.9m) cash deal.
The Mike Ashley-owned business has also agreed to act as guarantor in respect of certain payments under the SRG group pension scheme to the satisfaction of the trustees.
“As Frasers Group seeks to elevate its customer journey including a flexible repayment proposition, the acquisition of SRL will provide Frasers Group with expertise and synergies that will accelerate this ambition,” the company says in its filing today (25 February).
Frasers Group added it is also pleased to have “rescued another business out of administration and saved approximately 1,500 jobs.”
SRG appointed Daniel Francis Butters and Daniel James Mark Smith of Teneo Financial Advisory Limited as joint administrators yesterday, following the announcement of its intention to make such an appointment on 14 February.
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In its own filing this morning, SRG said its administrators are of the opinion that the sale was in the best interests of the company’s creditors as a whole.
It added: “In addition, while SRL itself was not in administration, it had temporarily ceased taking orders and the transaction will allow trading operations to resume, ensuring continuity for suppliers, the group’s over 1,500 employees, pension holders, and customers.”
Cancellation of the listing of the company’s shares on the premium segment of the Official List and cancellation of the trading of its shares on the main market for listed securities maintained by the London Stock Exchange were expected to take place at 8:00 a.m. today.