Studio Retail falls into administration after loan denial

Studio Retail, backed by Mike Ashley, is said to have appointed administrators after its request for a short-term loan was refused by its bank.

The online retailer has reportedly teamed up with Teneo to handle the deal, according to a Times report.

The publisher also noted that around 1,400 jobs, mostly based at its headquarters in Accrington, Lancashire, were at risk due to the retailer’s collapse.

Around 1,400 jobs at risk

Earlier this year, Studio, formerly known as Findel, issued its second earnings warning and flagged a notice of intent to appoint directors, citing a stock overhang that required additional working capital funding. .

Following the rejection of its request for a short-term working capital loan of 25 million pounds, the company suspended its shares on the London Stock Exchange, a decision that would have shocked investors.

An earlier report by The Times speculated that Mike Ashley’s Frasers Group, the company’s largest shareholder, may be considering a bailout deal for Studio Retail. Ashley, who owns a 30% share, previously attempted to acquire the retailer in 2019 but opted to sell some of its shares instead.

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