Frasers Group acquires Studio Retail
Mike Ashley’s Frasers Group has acquired Studio Retail in a £26.8 million deal following the online retailer’s appointment of administrators.
Yesterday, Studio announced that Daniel Butters and Daniel Smith of Teneo Financial Advisory had been named as joint administrators and and were in advanced discussions regarding an accelerated M&A process for the business and assets of the company, including its main operating subsidiary, Studio Retail.
The move followed an announcement earlier this month in which Studio said it intended to appoint administrators after it failed to secure an agreement with its lenders regarding a working capital funding need.
In a statement today, the company said it has sold its shareholding in Studio Retail and certain other assets to Frasers Group, its biggest shareholder. The sale has included the release of the company from its liabilities to its secured creditors under its revolving credit and ancillary facilities.
Studio said: “The administrators are of the opinion that the transaction was in the best interests of the company’s creditors as a whole.”
While Studio Retail itself was not in administration, it had temporarily ceased taking orders. The transaction will allow trading operations to resume and will protect the jobs of over 1,500 employees.
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