FOLLOWING news that a large East Lancashire employer were set to call in administrators and around a thousand jobs were at risk, Hyndburn MP Sara Britcliffe has shared a positive update.

The Lancashire Telegraph reported earlier this week that 1,000 people could be out of work as bosses at Studio Retail Group, based in Church, confirmed they would be filing a notice of intention to appoint administrators.

Described as one of the largest online retailers in the UK, Studio offers a range of products from clothing and footwear to homeware and Christmas ranges, available though various payment options on their digital platforms.

The company, which counts Mike Ashley’s Frasers Group as its biggest investor, is to hire administrators after failing to secure an urgent £25 million loan.

However, Ms Britcliffe says she has held positive discussions with directors and former Newcastle United Football Club owner, Ashley, with potential for a positive outcome.

She said: "The news earlier this week about the financial difficulties faced by Studio Retail Group has understandably created a lot of concern and nervousness for the 1,000 plus staff and suppliers locally.

"I have worked relentlessly to try and help find a solution, with the staff being paid on Friday and keeping their jobs my main priorities. I have been in constant contact with the management.

"I am delighted to have just been informed by the CEO of Studio that payroll will be paid this week as they expected.

"Today, I have personally spoken to Mike Ashley. I made clear my priority is to protect the jobs in Hyndburn and keep the company here.

"Discussions are very fast moving between lots of parties."
Studio Retail Group have been contacted but have not provided a further update on what they had previously said.

A statement provided by the company on Monday said: "As announced on January 31, Studio has a surplus stockholding which requires additional working capital funding whilst this good quality stock is sold through to customers.

"The Company requested a short-term loan of £25million from its lending banks to fund the surplus stockholding which it believed was sufficient to enable it to sell through the stock to customers.

"Following detailed discussions with our UK lenders, the Company has not been able to reach agreement with them to provide the additional funding Studio requires."