Studio Retail Group calls in administrators after £25 million funding bid fails to materialise

Studio Retail Group, which counts Mike Ashley’s Frasers Group as its biggest investor, is to hire administrators after failing to secure an urgent £25

What happened

The online retail business, which was known as Findel until 2019, has now had its shares suspended on the London Stock Exchange as a result.

Why it matters

Last month, the Accrington-based company saw its shares plunge when it issued its second profit warning in two months after being hammered by transport delays and soaring shipping costs. The home shopping business said its cash was being heavily cut into as a result of the distorted levels of stock following the disruption.

It confirmed on Monday that it has surplus stock and has required extra money for working capital while it is sold to customers. Studio asked its banks for a short-term loan of £25 million, which it believed would be “sufficient” to help it sell this stock.

“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,” it said.

This news brief is based on reporting published by TheIndustry.fashion on 2022-02-14. The original report is linked below.