Shirebrook-based Frasers Group has acquired digital retailer, Studio Retail Limited and certain other assets of Studio Retail Group (in administration).
The consideration for the transaction comprised cash and the release of Studio Retail Group from its liabilities to the lending banks under its revolving credit facilities resulting in a cash payment by Frasers Group to the lenders in the amount of £26.8 million.
The company also agreed to act as guarantor in respect of certain payments in respect of the Studio Retail Group group pension scheme.
Earlier in the month Studio Retail Group, which is backed by Mike Ashley’s Frasers Group, revealed it was set to bring in administrators after attempts to secure a £25m loan failed. Studio had a surplus stockholding requiring additional working capital funding whilst it was sold through to customers.
While Studio Retail Limited itself was not in administration, it had temporarily ceased taking orders and the transaction will allow trading operations to resume, ensuring continuity for suppliers, the group’s over 1,500 employees, pension holders and customers.
Frasers Group said in a statement to London Stock Exchange: “As Frasers Group seeks to elevate its customer journey including a flexible repayment proposition, the acquisition of Studio Retail Limited will provide Frasers Group with expertise and synergies that will accelerate this ambition. Frasers Group is also pleased to have rescued another business out of administration and saved approximately 1,500 jobs.”
