Studio Retail, the digital value retailer, is set to bring in administrators after attempts to secure a £25m loan failed.
Backed by Mike Ashley’s Frasers Group, the business has suspended its shares on the London Stock Exchange, where on Monday it revealed a Notice of Intention to Appoint Administrators.
On 31 January, Studio announced it had a surplus stockholding requiring additional working capital funding whilst it is 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. However, these talks have failed.
Studio Retail said: “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.
“The Board is taking this action to protect the interests of its creditors.”
