Lancashire’s Studio Retail Group appoints administrators with thousands of jobs at risk
Lancashire-headquartered listed company Studio Retail Group has announced it is set to call in administrators.
Thousands of jobs could be at risk following the announcement, which the online retail company said is down to being unable to secure a short-term loan of £25m.
The firm’s biggest investor is Mike Ashley’s Fraser Group - which owns brands including Sports Direct and House of Fraser.
Earlier this month, Fraser Group had increased its stake in the business from 27.6% to 28.8%.
The company, which made £579m in sales during the last financial year, said in a statement: “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.”
Shares in the group have now been suspended on the London Stock Exchange.