Accrington-based Studio Retail Group calls in administrators
- Published
Studio Retail Group made £579m in sales during the last financial year
An online retailer, which has Mike Ashley's Frasers Group as its biggest investor, is to appoint administrators.
Accrington-based Studio Retail Group, known as Findel until 2019, failed to secure an urgent £25m loan.
The business issued a second profit warning in two months in January after being affected by transport delays and increased shipping costs.
Studio had asked banks for a short-term loan which it said would have been "sufficient" to help it sell stock.
The firm said it had surplus stock as a result of the disruption and needed the money for working capital while it was sold to customers.
Studio has around 2.5 million customers and made £579m in sales during the last financial year.
It said: "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."
Mike Ashley's Frasers Group, which holds a stake of about 29%, tried to to take over the business in 2019
The company started as a catalogue gift retailer but expanded online to sell clothes, home and electrical products on flexible payment terms.
Studio has now had its shares suspended on the London Stock Exchange.
The group's biggest shareholder is retail veteran Mike Ashley's Frasers Group, which holds a stake of about 29%.
He failed in an attempt to take over the business in 2019.
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