// Studio Retail has filed a notice of intention to appoint administrators and has suspending shares on the London Stock Exchange
// Studio, which is backed by Mike Ashley’s Frasers Group, had failed to secure additional funding to help it manage distorted stock levels caused by supply chain chaos
Mike Ashley-backed Studio Retail has suspended its shares on the London Stock Exchange and filed a notice to appoint administrators
The online retailer, formerly known as Findel, failed to secure a short-term £25m loan from its banks to help it fund surplus stock.
READ MORE: Studio Retail Group issues profits warning amid “shipping issues”
At the start of this month Studio Retail’s share price plunged after it sounded its second profit warning in two months as higher shipping costs and transport delays took its toll. The firm said that distorted stock levels was eroding working capital.
However, requests for additional funding were rejected by its banks.
Mike Ashley’s Frasers Group has owned a 28.9% stake in the retailer since 2015 and the tycoon attempted to take over the business in 2019.
It is not clear whether Ashley’s Frasers Group will attempt to buy Studio Retail from administration.
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