Studio

THOUSANDS of customers who bought products from Studio Retail Group could be left out of pocket after the company called in administrators.The firm ha.

Therefore, another company will usually buy your debt and you’ll need to pay them. Unfortunately, debit card purchases are not covered in the same way. If the company continues trading, they may get their money back, but if not, they may have to join a list of creditors owed money by the company. However, to claim under Section 75 you don't have to have paid more than £100 or the full amount on your credit card – the card company is liable even if you made only part of the payment on your card. If you spend more than £100 using a credit card, you are protected by Section 75 of the Consumer Credit Act if a company goes bust. If it stops trading though, you may have to apply to the administrator to get your cash back - and even then there's no guarantee you'll see any money as you'll be bottom of a long list of people with claims against the business.

Studio Retail Group, which is backed by Mike Ashley's Frasers Group, failed to secure a £25m loan.

"The board therefore now intends to file a notice of intention to appoint administrators to SRG and Studio Retail Limited, its wholly-owned subsidiary, as soon as reasonably practicable." The firm said it had surplus stock as a result of the disruption and needed the money for working capital while it was sold to customers. Studio had asked banks for a short-term loan which it said would have been "sufficient" to help it sell stock.

The online retail business, which was known as Findel until 2019, has now had its shares suspended on the London Stock Exchange as a result.

Studio said it is now taking action to protect the interests of its creditors. “The board therefore now intends to file a notice of intention to appoint administrators to SRG and Studio Retail Limited, its wholly owned subsidiary, as soon as reasonably practicable.” Studio asked its banks for a short-term loan of £25 million, which it believed would be “sufficient” to help it sell this stock.

Studio Retail Group, which is a third owned by Sports Direct boss Mike Ashley, has filed a notice of intention to appoint administrators and has suspended ...

A notice reads: "Sorry, we're not taking any orders at the moment. "The board therefore now intends to file a notice of intention to appoint administrators to SRG and Studio Retail Limited, its wholly-owned subsidiary, as soon as reasonably practicable." In a statement, Studio said it would appoint administrators "as soon as reasonably practicable".

Retail Gazette looks at the recent history of Studio Retail to find out where it all went wrong for the online.

In April, Studio said it failed to find a buyer for the business. The supply chain crisis has hit many retailers over the past six months but Studio appears to be its first major victim. 2019: Mike Ashley’s Sports Direct increased their stake in Findel, which had rebranded as Studio Retail Group this year, to 30% and launched a takeover bid of the company. In January, Studio said it recorded a 32% rise in sales during the golden quarter. In December, Studio revealed profits and sales had soared during the pandemic but it was undertaking a strategic review to explore sale options after receiving a letter from largest shareholder Frasers Group, formerly Sports Direct, which said the firm was “significantly undervalued”. 2020: In April, Studio withdrew a revolving credit facility (RCF) of £85 million and a securitisation facility of £200 million to ensure it had sufficient liquidity for its near-term requirements.

It added: "The company requested a short-term loan of £25m from its lending banks to fund the surplus stockholding, which it believed was sufficient to enable ...

Following detailed discussions with our UK lenders, the company has not been able to reach agreement with them to provide the additional funding Studio requires. It had previously warned of supply chain challenges in October 2021. It added: "The company requested a short-term loan of £25m from its lending banks to fund the surplus stockholding, which it believed was sufficient to enable it to sell through the stock to customers.