Following its slippy descent into administration, it has been announced that Studio Retail has found a buyer. Mike Ashley’s Frasers Group has stepped up to the mark to acquire the digital retailer and other assets of the group.
The takeover by Frasers Group, which was Studio Retail’s biggest shareholder, is part of the brand and property firm’s ongoing strategy to “elevate its customer journey”.
In an announcement, the company said the acquisition of Studio Retail will provide it “with expertise and synergies that will accelerate this ambition”.
Studio Retail released from liabilities
It also added that it was “pleased to have rescued another business out of administration” further stating it had saved around 1,500 jobs in the process.
The transaction will release the Studio Retail Group from its liabilities to lending banks, with Frasers Group set to pay lenders the amount of 26.8 million pounds in cash.
It has also agreed to act as a guarantor for payments related to the retailer’s pension scheme.
Studio Retail announced its intention to appoint administrators in early February following two profit warnings published by the company, which, at the time, cited logistics problems and stock surplus.
Its dip into administration came as a request for a short-term loan of 25 million pounds was rejected by its lending banks, causing the retailer to put both its operations and ordinary shares on hold.