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Studio owed over £80m when it collapsed into administration

Written by Robert Moore Marketing Manager 15 March 2022

Studio owed over £80m when it collapsed into administration

Update as of 15 March 2022

It has been found out today that when Studio fell into administration, it owed more than £80 million. 

HMRC were owed around £4.7 million and employees were owed £1,100 for outstanding holiday pay and pension contributions.

The most recently submitted documents to Companies House by Teneo, the administators, show that the total consideration for the group was £1 and £53.1 million of secured liabilities under its revolving credit facility and ancillary facilities were released.

Administrators await a directors' statement about how much its unsecured creditors are owed, and if there are funds available for distribution to the unsecured creditors.

Retail Gazette reports more.

Update as of 25 February 2022

Frasers Group have rescued struggling online retailer Studio out of administration. 

It is reported that it was a £26.8m cash deal.

Mike Ashley's Frasers Group saves the jobs of more than 1,500 staff.

The Business Desk reports more.


24 February 2022

Online retailer, Studio, has collapsed into administration.

HSBC has rejected its short term £25 million working capital loan request. The company suspended its shares as a result. The loan, if approved could have kept the company going, according to reports.

1400 jobs are at risk, as administrators from Teneo have formally been drafted in to handle its administration.

There were warning signs earlier this month and the company filed an intention to appoint administrators last week.  Supply chain problems have been blamed.

The website for the retailer now has a notice to inform its customers it will not be taking any further orders. There are also warnings of delays for existing orders.

Last year, in better times, Studio had a market capitalisation of £100 million, made more than half a billion in sales and £41.7 million profit (before tax).

If you have ordered goods from the company then please see this link about getting goods

If you are an employee see this video below about your rights or look at this page

 

Category: What is administration

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