Studio Retail Group has announced that it will bring in administrators after it could not secure a loan to fund a surplus stockholding.

Mike Ashley's Frasers Group has had a 28.9 per cent stake in the home shopping retailer since 2015.

Studio Retail, which sells clothing, home, garden, and greeting cards via catalogues and its website, said in a statement that it has a surplus stockholding which requires additional capital funding while the stock is sold through to customers.

The business requested a short-term loan of £25 million from its lending banks to fund the stockholding, which the company said would be enough to enable it to sell through the product to customers.

However, the company was unable to reach an agreement with the banks to provide the additional funding.

It added that following a consultation with the UK's financial watchdog, it has asked that its London Stock Exchange listing be "temporarily suspended".

Studio Retail Group did not comment beyond its statement to investors.

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