Online retailer Studio has formally drafted in administrators after signalling the likelihood of collapse earlier this month.
Studio has appointed Teneo as an administrator, The Times has reported.
Studio, in which Frasers Group tycoon Mike Ashley is an investor, disclosed to investors 10 days ago its intention to appoint administrators after failing to secure a £25m loan necessitated by a stock surplus. It had warned on profits twice over a two-month period.
Studio has approximately 2.3 million customers and sells homeware and electronics as well as clothing, but it has been impacted by supply chain problems and transport delays.
Shares in the retailer were suspended when it announced the likelihood of administration.
As recently as the end of January, when Studio revealed tough trading and that it was looking at working capital funding requirements, chief executive Paul Kendrick struck a confident tone.
He said at the time: “The fundamentals of Studio’s business model are solid, notwithstanding the market challenges… We will continue to drive the long-term profitability and success of the group.”
- Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday
No comments yet