Online Retailer’s Struggles Continue Amid Shipping Delays and Port Congestion
- Studio Retail appoints Teneo as administrators
- £25m loan request rejected by HSBC
- 1,400 jobs at risk
- Trading in shares suspended on London Stock Exchange
- Mike Ashley’s Fraser Group is the largest stakeholder with 28.89% of company’s shares
- Profits rose to £41.7m from £6.8m in previous period
Studio Retail, an online retailer formerly known as Findel, has appointed Teneo as administrators after its £25m loan request was rejected by HSBC. This decision puts approximately 1,400 jobs at risk. The company’s trading in shares was suspended on the London Stock Exchange following the loan rejection. Mike Ashley’s Fraser Group holds the largest stake with 28.89% of the company’s shares. Studio Retail Group had reported a significant increase in profits, rising from £6.8m to £41.7m in the year ended on March 26, 2021.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Studio Retail’s financial situation, including details on its loan request rejection, appointment of administrators, and the impact on jobs. It also includes relevant background information such as the company’s previous profit figures.
Noise Level: 5
Noise Justification: The article provides relevant information about Studio Retail’s financial situation and its request for a loan being rejected by HSBC, but it lacks analysis or exploration of long-term trends or possibilities. It also does not hold powerful people accountable or explore consequences on those bearing risks. The article could benefit from more evidence and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: HSBC and Mike Ashley’s Fraser Group
Financial Rating Justification: The article discusses Studio Retail’s financial situation, including its request for a loan from HSBC, the impact on its shares trading, and its relationship with Mike Ashley’s Fraser Group. This directly pertains to financial topics such as loans, company profits, and stock market implications.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
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