Teneo has been called in to handle the administration of Studio. This follows the business’ inability to secure financial support from its bankers to enable it to work through current difficulties. Studio, formerly Findel, had suffered from delayed deliveries of stock from its suppliers in the Far East which lost its sales during the peak Christmas period, as well as incurring increased freight costs – problems which have been experienced across the sector.
Even with its 2.3 million customers and c.£500m annual sales, the future for Studio is far from assured. Frasers Group holds a 28.9 per cent stake but is considered unlikely to take it on given its recent focus on taking its brands upmarket. There are c.1400 employees anxiously waiting to learn if they will keep their jobs as well as a large number of creditors who could be severely impacted.
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