Frasers Group acquires Studio Retail

Cllr Miles Parkinson OBE, Leader of Hyndburn Borough Council said:

“I am very pleased to hear the news of a solution for Studio after concern and uncertainty over the last 10 days. Today’s announcement offers much needed comfort and relief for many people in Hyndburn. Frasers Group acquisition of Studio Retail Limited, and some assets of Studio Retail Group plc, has saved approximately 1,500 jobs – many of which are held by people from our local community. Studio Retail are a key part of our economy, we fully support them on this journey and thank all those who have been working tirelessly to secure this future for the business.”

Statement from Frasers Group

Frasers Group announces that it has acquired digital retailer, Studio Retail Limited (SRL) and certain other assets of Studio Retail Group plc (in administration) (SRG) (the Transaction)[1]. 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 £26.8 million. 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

[1] The Transaction constitutes a class 2 transaction under the UK Listing Rules. For the year ended 26 March 2021 (the last date to which statutory accounts are available and prior to the appointment of the administrators to SRG), SRG had gross assets of £515,814 million and profits of £42,727 million.