British online retailer Studio Retail Group, known until mid-2019 as Findel plc, filed for administration – a British form of bankruptcy proceedings – for itself and Studio Retail Limited, its wholly-owned subsidiary, after failing to obtain a £25 million (€30m) short-term loan. The company also suspended its shares on the London Stock Exchange while it begins the U.K.’s form of bankruptcy proceedings. Studio Retail’s shares tumbled in February after its second profit warning in two months on the back of higher shipping costs and transport delays. As a result of distorted stock levels, working capital was being eroded, it added. Studio asked for a short-term loan to fund the surplus stock but failed to reach an agreement with lenders. “Following detailed discussions with our U.K. lenders, the company has not been able to reach an agreement with them to provide the additional funding,” the company explained.
Studio Retail sells clothes, shoes as well as home and electrical products on flexible payment terms. It has about 2.5 million customers and posted sales of £578.6 million (€690m) and profits of £41.7 million (€50m) last year. Frasers Group, which is controlled by the businessman Mike Ashley, owns a 28.9 percent stake in Studio Retail. In 2019, Ashley attempted a takeover of the online retailer.
