Frasers Group has acquired digital retailer Studio Retail and certain other assets of Studio Retail Group plc, which faced administration on 14th February.
Studio Retail is one of the UK's largest catalogue retailers, and owns the Studio and Ace brands. These retailers operate online, selling a range of personalised gifts and housewares.
Studio Retail was set to call in the administrators last week after an initial £25m rescue bid failed. As one of the company's larger investors, Mike Ashley, chief executive of Frasers Group (Sports Direct), stood to lose £30m.
Frasers states: "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 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 Studio Retail 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."
