Frasers Group Acquires Studio Retail For 27 Million Pounds, Preserving 1,500 Jobs in The Process

British home shopping company Studio Retail has found a buyer after its stumbling journey into administration. Frasers Group, led by Mike Ashley, has moved forward to buy the internet retailer and other group assets. 

The acquisition by British retail and intellectual property group - Frasers Group, the largest stakeholder in Studio Retail, is part of Studio Retail's continued goal to elevate its customer experience.

The firm said in a release that the purchase of Studio Retail would offer it with "expertise and synergies necessary to advance this objective. 

Additionally, it said that it was pleased to have rescued another firm from administration, noting that it had averted the loss of around 1,500 jobs in the process.

The acquisition would discharge the Studio Retail Group's obligations to lending institutions, with Frasers Group expected to give lenders a cash payment of 26.8 million pounds. Additionally, it has committed to serve as a guarantor for payments made to the retailer's pension plan.

Studio Retail declared its intention to hire administrators in early February, after the publication of two profit warnings by the firm, which cited logistical issues and a stock glut at the time. 

It entered administration when its lending banks refused a request for a short-term loan of 25 million pounds, forcing the company to suspend operations and ordinary shares.

More About Frasers Group

Frasers Group plc is a British retail and intellectual property conglomerate known for its ownership of the House of Fraser department store chain. The corporation is well known for its Sports Direct brand, which runs both physical and online stores.