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Mike Ashley's Frasers buys Studio Retail, saving 1,500 jobs

Mike Ashley's Frasers buys Studio Retail, saving 1,500 jobs
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By Reuters
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LONDON - British sportswear and fashion group Frasers has acquired online retailer Studio Retail Limited (SRL), saving about 1,500 jobs, it said on Friday.

Studio Retail Limited's parent, Studio Retail Group (SRG), formerly went into administration on Thursday. Trade in its shares had been suspended on Feb. 14, after its banks turned down a request for a loan.

Frasers, formerly called Sports Direct and controlled by Mike Ashley, had been SRG's biggest shareholder with a stake of 29%.

It said it had paid SRG's lenders 26.8 million pounds ($35.8 million) and also agreed to act as guarantor for certain payments to the SRG group pension scheme.

"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," said joint administrator Daniel Smith.

($1=0.7477 pounds)

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