Frasers Group acquires Studio Retail in £27m deal

Following its slippery descent into administration, it was announced that Studio Retail had found a buyer. Mike Ashley’s Frasers Group has stepped up its push to acquire the digital retailer and other group assets.

The takeover by Frasers Group, which was the largest shareholder in Studio Retail, is part of the brand’s and property company’s ongoing strategy to “elevate its customer journey”.

In an announcement, the company said the acquisition of Studio Retail will bring it “expertise and synergies that will accelerate this ambition.”

Studio Retail released from its debts

He also added that he was “happy to have saved another company from administration”, further stating that he had saved around 1,500 jobs in the process.

The transaction will free Studio Retail Group of its debts to lending banks, with Frasers Group to pay the lenders £26.8 million in cash.

She also agreed to vouch for payments related to the trader’s pension plan.

Studio Retail announced plans to appoint directors in early February following two earnings warnings issued by the company, which at the time cited logistical issues and excess inventory.

Its plunge into administration came when a request for a £25million short-term loan was rejected by its lending banks, forcing the retailer to suspend both operations and ordinary shares.

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