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Studio Retail, the digital value retailer, has announced its intention to appoint administrators to SRG and Studio Retail Limited, its wholly owned subsidiary, to protect the interests of its creditors.
The announcement comes as Studio Retail, previously known as Findel, has been unable to reach an agreement with its UK lenders to acquire a short-term loan of £25m.
The funding application was created to provide the additional finance which Studio reportedly requires to fund the surplus stockholding which it believed was sufficient to enable it to sell through the stock to customers.
As announced on 31 January, Studio has a surplus stockholding which requires additional working capital funding whilst this stock is sold through to customers.
The retailer said it will appoint administrators “as soon as reasonably practicable” to meet its working capital funding requirements.
Additionally, following consultation with the Financial Conduct Authority (FCA), the company has requested that the listing of the company’s ordinary shares of 10 pence each be temporarily suspended with effect from 14 February 2022.
