Administrators appointed by Studio Retail Group
Accrington-based Studio Retail Group has appointed Daniel Francis Butters and Daniel James Mark Smith of Teneo Financial Advisory Limited as joint administrators of the company.
It said the joint administrators are currently in advanced discussions in relation to an accelerated M&A process for the business and assets of the company, including in relation to its main operating company, Studio Retail Limited.
A statement from the business said: “For the avoidance of doubt, Studio Retail Limited is not in administration. A further update will be provided in due course.”
At the request of the company, and in accordance with its announcement last Monday (February 14), the Financial Conduct Authority temporarily suspended the company’s listing from 7.30 am on the day, and the London Stock Exchange suspended trading of the company’s ordinary shares on the main market.
Today’s statement said: “In light of the administration, the administrators have applied for the cancellation of the listing of the company’s shares on the premium segment of the Official List and cancellation of the trading of the company’s shares on the main market for listed securities maintained by theLondon Stock Exchange, which are both expected to take place at 8:00 am on 25 February, 2022.”
The online retailer announced that it was calling in administrators after failing to land a £25m lifeline from its lending banks.
It is feared up to 1,400 jobs could be at risk at the Lancashire business.
Studio Retail Group, which counts Mike Ashley’s Frasers Group as its biggest investor, reported in January that it had a surplus stockholding which required additional working capital funding while it was sold through to customers.
The company requested a short term loan of £25m from its lending banks to fund the surplus stockholding, which it believed was “sufficient” to enable it to sell through the stock to customers.
Following discussions with its UK lenders, the business was unable to reach agreement with them to provide the additional funding Studio Retail Group required.
In a statement last week the group said: “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.
“The board is taking this action to protect the interests of its creditors.”
