Accrington-based Studio Retail Group backed by Mike Ashley file for administration

Mike Ashley Credit: PA images

An Accrington-based online retailer, which has Mike Ashley's Frasers Group as its biggest investor, is filing for administrators after failing to secure an urgent £25 million loan.

Studio Retail Group, which was known as Findel until 2019, has now had its shares suspended on the London Stock Exchange as a result.

The company saw its shares plunge last month when it issued its second profit warning in two months after being hammered by transport delays and soaring shipping costs.

Studio confirmed on Monday, 14 February, that it has surplus stock and has required extra money for working capital while it is sold to customers.

The company, which made £579m in sales during the last financial year, asked for a short-term loan of £25 million but failed to reach an agreement with its bank.

It said: "The board therefore now intends to file a notice of intention to appoint administrators to SRG and Studio Retail Limited, its wholly owned subsidiary, as soon as reasonably practicable."

The business started life as a catalogue retailer focused on gifts but has expanded online and now also sells clothes, home and electrical products.

The group's biggest shareholder is Mike Ashley's Frasers Group, which holds a stake of about 29%.