An investigation into the financial statements of Studio Retail Group, which was rescued by Frasers Group earlier this year, has been launched.
The Financial Reporting Council (FRC) is looking into the audit of the Lancashire-headquartered company by global accountancy firm Mazars LLP.
The industry watchdog said it's investigating statements for the period to March 26, a month after Frasers bought the group for £1.
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A statement on the FRC website said: "The Financial Reporting Council (FRC) has commenced an investigation in relation to the audit conducted by Mazars LLP of the financial statements of Studio Retail Group plc for the period ended 26 March 2021.
"The decision was made at a meeting of the FRC’s Conduct Committee on 13 September 2022.
"The investigations will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure."
Mazars has been contacted for a comment.
At the end of September, BusinessLive reported that the remaining creditors of Studio Retail Group are in line to recover the millions they are collectively owed - but some face a longer wait.
The Accrington-headquartered business racked up debts of more than £80m when it entered insolvency and its assets were bought by Mike Ashley's Frasers Group for just £1.
Administrators at Teneo have been overseeing the remaining business ever since and have been working to identify who owes what to whom - and if there is enough money to pay them.
When Studio Retail Group was bought by Frasers Group at the start of March the move saved in the region of 1,500 jobs.
The total consideration for the group was £1 as well as the release of £53.1m of secured liabilities under its revolving credit facility and ancillary facilities.
Frasers Group then acquired Studio Retail Group's secured lenders' claims against it for c.£26.8m.
BusinessLive reported that Studio Retail Group owed £50m for a revolving credit facility and £3.1m for other facilities when it entered administration.
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