By Joe Hoppe
Frasers Group PLC announced on Friday that it has acquired digital retailer Studio Retail Group PLC’s main operating subsidiary, Studio Retail Ltd., and certain other assets for 26.8 million pounds ($35.9 million) .
The British sports fashion retailer said the purchase included cash and the release of Studio Retail from its debts to lending banks involved in its revolving lines of credit, resulting in a cash payment to Studio’s lenders from 26, £8 million. Frasers has also agreed to vouch for certain pension plan payments.
The company said the acquisition will provide it with expertise and synergies to further improve customer service.
Studio Retail Group had said on February 14 that it would suspend shares and appoint administrators after failing to reach an agreement with lenders for additional funding. He had unsuccessfully applied for a £25million short-term loan to fund excess stock until it was sold to customers, Studio said.
“While [Studio Retail Ltd.] itself was not under administration, it had temporarily ceased taking orders and the transaction will allow business operations to resume, providing continuity for suppliers, the group’s more than 1,500 employees, pensioners and customers,” Studio said in a separate statement.
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