Mike Ashley has snapped up online retailer Studio for £26.8million after it fell into administration this week.
Frasers Group’s acquisition means around 1,400 jobs will be saved, and thousands more pending orders will be fulfilled.
Studio collapsed into administration on Thursday and appointed Teneo to help find a buyer.
The online retailer had signalled last week that it was likely to fall into administration after its request for a short-term bank loan of £25million had been rejected.
Parent company Studio Retail Group, which was already a third owned by Sports Direct boss Mike Ashley, is valued at £100million, and it made more than £500million in sales last year, with a £41.7million pre-tax profit.
It is understood that the £26.8million deal will also save around 1,400 jobs.
Frasers Group also agreed to act as guarantor in respect of certain payments into the company’s group pension scheme.
When a company goes into administration, it doesn't necessarily mean the end of the business.
As part of the process, an appointed licensed insolvency practitioner will be put in charge of managing the firm.
It will be their job to try to help find ways to repay debts, solve its cashflow problems or find a new owner.
This can last anywhere from a few weeks to up to a year or more - so it can be a lengthy ordeal.
But if the administration process can't rescue the company or find a new owner, this usually leads to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
