// Studio Retail accountant Mazars is under investigation by the Financial Reporting Council (FRC)
// The probe is for Mazars’ work at Studio Retail Group for the year to 26 March 2021
Studio Retail Group accountant Mazars is under investigation by the Financial Reporting Council (FRC) for its work on the financial statements of the online retailer over the 12-month period to 26 March 2021.
The accounting firm had been responsible for auditing the books for the struggling Studio Retail, which eventually went bust in February 2022 before being bought out by Mike Ashley.
A statement on the FRC website said the watchdog had “commenced an investigation in relation to the audit conducted by Mazars LLP of the financial statements of Studio Retail Group for the period ended 26 March 2021”.
Ashley’s Frasers Group stepped in to rescue the retailer – which ultimately collapsed under the strain of soaring shipping costs, supply chain delays and cash flow struggles – in a £26.8million deal.
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Mazars said it would ‘co-operate fully’ with the FRC investigation, which could result in a significant fine for the accountancy firm – one of the largest in the UK.
Frasers Group – which has owned a 28.9% stake in the retailer since 2015 – declined to comment on the investigation because it relates to accounts from before its takeover of the firm.
Mike Ashley had previously attempted to take over the business in 2019 when he made an £140 million takeover bid for the entire business, a move which was rejected by Studio’s shareholders.
The news comes as Ashley prepares to step down from Frasers Group and his role as director on the Sports Direct and Flannels owner’s board at the AGM later this month, after handing the business over over to son-in-law Michael Murray last year.
