STU.L Share Price (STU)

In case anybody hasn't heard:-Studio Retail Group Plc - In Administration (“the Company”)
Company Number: 00549034
Daniel James Mark Smith and Daniel Francis Butters were appointed Joint Administrators of the Company on 24 February 2022. Shortly after the appointment, the Company suspended the listing and trading of the Company’s ordinary shares.

Following application by the Company, the Financial Conduct Authority has cancelled the listing of the Company's ordinary shares on the premium segment of the Official List and the London Stock Exchange has cancelled the trading of the Company’s ordinary shares on the main market for listed securities maintained by the London Stock Exchange, in each case with effect from 08.00 am (GMT), 25 February 2022.

As such the shares have no value and there will be no distribution to the shareholders.
Details of the sale of the company’s shareholding in Studio Retail Ltd to and certain other assets to Fraser’s Group were published to the Companies House database on 9 March 2022.

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I’m not sure it is very fair to compare studio to Debenhams, one is still forecasting to make near their record profits for the year and the other was a department store plagued with high lease costs as customers were moving away from physical stores.

I think people are jumping the gun here, the rns states they are intending to appoint administrators, but it is a few days on now and still no confirmation that they have actually entered into administration which should tell you that something is going on in the background.

I suspect there will be a resolution on this tomorrow, or if not by Friday at the latest. If a company is making £30m a year and realistically can be picked up for £100m or less even with short term cash flow issues there will be buyers rubbing their hands together and queueing up. All parties involved will be trying to avoid administration in this case.

This will either be sold as a going concern, or there will be some form of equity financing deal agreed. I don’t think it will even reach administration.

People see the term administration and think of high profile cases like Debenhams and think that means it is the end, but that’s not necessarily the case especially when a company is profit making and still has substantial net assets excluding intangibles.

I’ve no position here although I did consider it at times, If you are a shareholder you will no doubt end up having to take a hit, but if you are an employee worried about your pay check I wouldn’t be too concerned personally.

Debenhams was a disgrace. Refused any offer by Ashley and the brand was bought out by BOO. The employees lost their jobs and pensions and will go into the lifeboat scheme which pays out about 50% on average over the pension term (90% at start but no or very small yearly increase so it falls away quickly over time

He did try do exactly that with Debenhams (save the company for all shareholders). Often there are too many parties with diverging interests....Directors, Bond holders, banks etc. Quite often a pre-pack is already agreed and no competitive tender is held.