Sale to Ashley group saves over 1,500 jobs
MORE than 1,500 jobs have been saved after confirmation that Hyndburn’s Studio has been sold to Frasers Group.
Studio Retail Group, one of the borough’s biggest employers, called in the administrators last month in response to a failed attempt to secure a £25m loan.
Daniel Smith and Daniel Butters, of Teneo Financial Advisory Limited, were appointed as joint administrators of Studio Retail Group plc on February 24.
Shortly following their appointment, the administrators sold the share capital of the main trading subsidiary of SRG plc, as well as certain other assets, to Mike Ashley’s Frasers Group plc.
Under the terms of the transaction, Studio will continue to trade online under the ownership of
Frasers. The sale preserves more than 1,500 jobs in Studio.
Daniel Smith, Joint Administrator, said: “This transaction preserves the Studio brand and the jobs of its employees, providing them with stability and a platform for growth in what continues to be a challenging retail environment.
“We would like to thank all employees and other key stakeholders for their support through this process.”
In a statement issued at the end of January, the business said its adjusted pretax profits for its full financial year were likely to be down from the market expectation of £35m. This prompted staff to become fearful for their jobs and uncertain about upcoming payments being made.
Hyndburn MP Sara Britcliffe said: “This morning (Friday) I have received the news that Studio Retail Limited has been bought by Fraser Group and a solution has been reached. This pro
tects over 1000+ jobs and I know it will be a huge relief to all the staff and their families, as I know the last 10 days have been very difficult for all as they faced uncertainty.
“I am relieved that these jobs have been saved and now we need to ensure they
stay in Hyndburn longterm.”
Studio is a digital value retail business which also provides integrated financial services.
With a history in mail order, it has migrated over 90 per cent of its business online.