Frasers Group, the parent company of Sports Direct, announced today it has acquired Studio Retail Limited and certain other assets of Studio Retail Group plc. The British online retailer Studio Retail Group had filed for administration earlier this month for itself and its wholly-owned subsidiary Studio Retail Limited after failing to secure a short-term loan of £25 million (€30m).
According to a company statement, Frasers Group is providing 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 from Frasers Group to the lenders of £26.8 million (€32.1m). Frasers also agreed to act as guarantor for certain payments in relation to Studio Retail’s group pension scheme.
Frasers noted that the acquisition will also provide it with expertise and synergies that will be beneficial to its future business. It said it was pleased to have “rescued another business out of administration and saved approximately 1,500 jobs”.
Frasers Group, which is controlled by the businessman Mike Ashley, owned a 28.9 percent stake in Studio Retail prior to the transaction. In 2019, Ashley had already attempted a takeover of the online retailer.
