Frasers Group purchases Studio Retail Limited
Mike Ashley's Frasers Group has acquired Studio Retail Limited and certain other assets of Studio Retail Group for £26.8 million, saving approximately 1,500 jobs.
Studio Retail Group appointed administrators Teneo on 23 February, after issuing profit warnings and a request for a £25 million bank loan was rejected. The home shopping business said its cash was being heavily cut into as a result of the distorted levels of stock following the shipping disruption.
Frasers Group, which was Studio Retail Group's biggest shareholder with a 29% stake, said the acquisition will provide the group "with expertise and synergies" that will accelerate its customer elevation plan. Frasers Group also highlighted the significance of Studio's flexible payment proposition.
The transaction means Studios Retail’s London Stock Exchange listing will be cancelled and it will now officially join Frasers operations, joining other names including Flannels, House of Fraser, Jack Wills and Sports Direct.
Frasers also agreed to act as guarantor of the SRG group pension scheme.
Further details about the transaction are expected in the coming weeks.