Mike Ashley's Frasers Group PLC (LSE:FRAS) said it acquired digital retailer Studio Retail Ltd (SRL) as well as other assets of Studio Retail Group PLC (LSE:STU) (SRG), which is in administration.
Frasers, which is SRG's biggest shareholder with a stake of almost 29%, said it paid £26.8mln in cash to SRG’s lenders to release it from its liabilities. In addition, it has agreed to act as guarantor in respect of certain payments related to the SRG group pension scheme.
SRG called in the administrators on Thursday after its bank HSBC rejected its request for a loan, Retail Gazette reported.
The acquisition of SRL will provide Frasers with expertise and synergies in its ambition to “elevate its customer journey including a flexible repayment proposition”, the group said.
It noted that the deal has helped rescue another business out of administration and saved approximately 1,500 jobs.
Frasers shares rose 1.53% to 630.50p in early trade.