Studio Retail Group appoints administrators
Studio Retail Group has formally appointed administrators Teneo, after issuing profit warnings and a request for a £25 million bank loan was rejected.
About 1,400 jobs have been put at risk after the online retail business, which was known as Findel until 2019, appointed administrators.
Last month, the Accrington-based company saw its shares plunge when it issued its second profit warning in two months after being hammered by transport delays and soaring shipping costs. The home shopping business said its cash was being heavily cut into as a result of the distorted levels of stock following the disruption.
Studio Retail Group counts Mike Ashley’s Frasers Group as its biggest shareholder, with a 28.9% stake.
It later confirmed that it has surplus stock and has required extra money for working capital while it is sold to customers. Studio asked its banks for a short-term loan of £25 million, which it believed would be “sufficient” to help it sell this stock.
It said in a statement: “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 board therefore now intends to file a notice of intention to appoint administrators to SRG and Studio Retail Limited, its wholly owned subsidiary, as soon as reasonably practicable.”