Frasers Group has had its offer of £26.8 million accepted for Studio Retail Group Ltd which entered administration on February 24th.
Joint administrators Daniel Butters and Daniel Smith of Teneo confirmed that they had been in advanced discussions with regard to an accelerated M&A process for the business and assets of Studio Retail Group (SRG) and that the company had sold its shareholding in Studio Retail Ltd and certain other assets to Frasers Group, its largest shareholder. The deal releases SRG from its liabilities to its secured creditors under its revolving credit facilities and ancillary facilities. Studio Retail Ltd had called a temporary halt to order tasking but this transaction will allow trading operations to quickly recommence.
In a statement, Frasers Group said: “As Frasers Group continues 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 1500 jobs.”
It had been rumoured that B&M had looked at the opportunity presented by the business but it has not been confirmed whether it made an offer. The administrators said that the transaction was in the best interests of the company’s creditors as a whole. Studio Retail Group’s shares will be cancelled this morning.
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