Frasers Group has bought online retailer Studio Retail out of administration, the U.K equivalent of bankruptcy proceedings, for £26.8 million ($36M).
Shares of Studio Retail, which sells a mix of cut-price own-brand products from clothing, furnishings, gifts, and cards, were suspended last week when the group said a request for a £25 million loan had been turned down by its bank HSBC. The group, formerly known as Findel, called in administrators, wiping out shareholders led by Fraser Group, which had held a nearly 30 percent stake.
Daniel Smith, the joint administrator, said: “This transaction preserves the Studio brand and the jobs of its employees, providing them with stability and a platform for growth in what continues to be a challenging retail environment. We would like to thank all employees and other key stakeholders for their support through this process.”
Frasers, which owns Sports Direct, House of Fraser department stores, Evans Cycles, and the Flannels designer fashion chain, said in a brief regulatory statement, “As Frasers Group seeks to elevate its customer journey including a flexible repayment proposition, the acquisition of SRL will provide Frasers Group with expertise and synergies that will accelerate this ambition. Frasers Group is also pleased to have rescued another business out of administration and saved approximately 1,500 jobs.”
Frasers also owns Eastern Mountain Sports and Bob’s Stores in the U.S.