Studio Retail, the online retailer that was recently acquired by Frasers Group, is now facing an investigation into its financial statements for the 2020/21 fiscal year. The Financial Reporting Council (FRC), which oversees financial reporting in the UK, is conducting the probe.

The FRC’s investigation specifically focuses on the financial statements for the period ending on March 26, 2021. These statements were audited by global accountancy firm Mazars. It’s worth noting that the FRC has made it clear that the investigation is solely directed at the auditors involved, and not at any other individuals or organizations.

Before being acquired by Frasers Group, Studio Retail was struggling financially, with debts exceeding £80 million. Frasers Group purchased Studio Retail for a nominal fee of £1, in addition to taking on £53.1 million in secured liabilities. They also acquired Studio Retail Group’s secured lenders’ claims for around £26.8 million.

Mazars, the auditing firm responsible for examining Studio Retail’s finances, has stated that it is fully cooperating with the FRC’s investigation. However, due to client confidentiality and the need to respect the investigation process, Mazars has refrained from providing further comments at this time.

Frasers Group, which initially held a 30% stake in Studio Retail before the acquisition, has not issued an official statement regarding the FRC’s involvement in the investigation.

The outcome of the investigation and its potential impact on Studio Retail under its new ownership remains uncertain. As more information emerges throughout the investigation, a clearer picture of Studio Retail’s financial situation during the specified period is expected to emerge.

Here are two links related to Studio Retail and its acquisition by Frasers Group:
– [Link 1](https://www.studioretailgroup.com/investor-relations)
– [Link 2](https://www.frasersgroup.com/investors/)