The studio collapsed into management on Thursday and appointed Teneo to handle its demise – but its third-largest shareholder, Mike Ashley, now holds a majority stake
Mike Ashley bought online retailer Studio for £26.8m after it fell into administration this week.
The acquisition of Frasers Group means approximately 1,400 jobs will be saved and thousands more pending orders will be fulfilled.
Studio collapsed into management on Thursday and assign Teneo to help find a buyer.
Last week, the online retailer signaled it was likely to fall under administration after a request for a £25m short-term bank loan was denied.
Parent company Studio Retail Group, already owned by a third Live sports Boss Mike Ashleywas valued at £100 million and had sales of more than £500 million last year, with a pre-tax profit of £41.7 million.
It is understood that the £26.8m deal will also save around 1,400 jobs.
Frasers Group also agreed to act as guarantor for certain payments into the company’s group pension scheme.
When a company go into managementit does not necessarily mean the end of business.
As part of the process, a designated licensed insolvency specialist will be responsible for the management of the company.
Their job is to try to find a way to pay off debt, solve cash flow problems, or find a new owner.
This process can take from a few weeks to a year or more – so it can be a lengthy ordeal.
But if the management process is unable to rescue the company or find a new owner, this often leads to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
https://www.mirror.co.uk/money/mike-ashley-rescues-online-giant-26329581 Mike Ashley acquires defunct online giant Studio in £27m deal