Tue, 08 Dec 2020 | BUSINESS SALE
Online shopping firm Studio Retail Group has announced that it is seeking a buyer as part of the company’s strategic review. The group, which formerly traded as Findel, is an online retailer of fashion, homeware and gifts through its Studio.co.uk site, as well as being the UK’s second largest supplier of equipment for schools.
Mike Ashley’s Frasers Group is Studio Retail’s majority shareholder, with a 37 per cent stake in the business, and is thought to have urged the company to launch a review of its business. Frasers reportedly contacted Studio Group in October to says that the company is “misunderstood” and therefore significantly undervalued.
In the wake of this, Studio Retail Group appointed investment bank Stifel Europe to explore the business’ options as it undertook a strategic review. Studio Retail says that second largest shareholder Schroders also supports the move.
The company said: “The board has now determined that it is an appropriate point to undertake a comprehensive review of the strategic options open to it in order to maximise value for shareholders.”
“These options include a sale of the group which will be conducted under the framework of a ‘formal sale process’ in accordance with the Takeover Code.”
The group has said it is not yet in contact with any potential buyers. While it is not known how much Studio Retail might sell for, the company rejected a £139 million takeover bid from Frasers in April, saying that it undervalued the business.
Frasers first acquired a stake and began retailing through the group in 2015 and has gradually built up its share in the business. Frasers and Schroder hold a combined stake of around 56 per cent in Studio Retail.
Studio Retail has seen a huge increase in sales this year as the COVID-19 pandemic has driven a boom in online shopping. Its half year results to September 2020 show underlying pre-tax profits rising 52 per cent to £17.7 million.
In the same period, group revenue rose 17.2 per cent to £268 million, compared to £228.7 million in the same period a year earlier. The company says that its strong online offering and improved infrastructure had enabled it to meet surging demand.
Find businesses for sale here.
If you are looking for an exit, we can help!
Find online businesses for sale in the UK
Opportunity to acquire a high-end ladies fashion retailer with multiple locations in London, featuring established sales channels across retail, online, and click and collect services.
LEASEHOLD
Established car sales garage business in Worthing is now available, offering a unique opportunity with an included self-contained one bedroom flat.
LEASEHOLD
This is an exciting opportunity to acquire a well-established brand owner and distributor specialising in pet treats, food, and toys across the UK and Ireland.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.