// Mike Ashley’s Frasers Group eyes Studio finance business following administration
// Studio called in administrators from Teneo on Thursday after failing to secure £25m loan
Mike Ashley’s Frasers Group is reportedly considering snapping up Studio’s consumer finance business after the online retailer collapsed into administration.
Studio called in administrators from Teneo on Thursday after its bank HSBC rejected its request for a loan.
Ashley, who was the biggest single investor in Studio at the time of its collapse with a 29% stake, is now eyeing up Studio Pay, Retail Week reported.
Studio Pay offers customers personal credit accounts to spread the cost of their purchases.
The potential sale could be worth as much as £30 million and enable Ashley to offer credit services to online customers of Frasers Group’s existing retailers including Flannels and Sports Direct.
Studio Pay is already approved by the Financial Conduct Authority. It means that if Ashley succeeds in striking a deal, Frasers could start offering credit to its customers almost immediately.
Studio collapsed after failing to secure the £25 million loan it required after its supply chain challenges.