Entrepreneur Mike Ashley’s Frasers Group has swooped for digital retailer Studio Retail in a £26.8m deal.
The firm – already owners of a huge portfolio of businesses including Flannels, House of Fraser, Sports Direct and Evans Cycles – announced on the stock market that it had "rescued another business out of administration and saved approximately 1,500 jobs".
The move comes after the Lancashire-headquartered online trader confirmed on Thursday it had appointed Teneo to lead the administration process of Studio Retail Group.
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That also came after the group, whose largest shareholder was Frasers Group, issued a statement on Monday, February 14, that it was set to call in the administrators.
In a new statement, Frasers Group said: "Frasers Group announces that it has acquired digital retailer, Studio Retail Limited (SRL) and certain other assets of Studio Retail Group plc.
"The consideration for the transaction comprised cash and the release of SRG from its liabilities to the lending banks under its revolving credit facilities resulting in a cash payment by Frasers Group to the lenders in the amount of £26.8m.
"The company also agreed to act as guarantor in respect of certain payments in respect of the SRG group pension scheme to the satisfaction of the trustees.
"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."
In a statement at the end of January, Studio Retail Group said its adjusted pre-tax profits for its full financial year are not likely to be between £28m and £30m, down from the current market expectation of £35m.
