Studio Retail Group, based in Accrington, is set to appoint administrators after failing to secure the £25m funding it believed would help offload its surplus stockholding.
The company has a surplus stockholding which it says is in good quality, but requires additional working capital to sell through to its customers.
After failing to agree a deal with lenders it now intends to appoint administrators to SRG and Studio Retail Limited, its wholly-owned subsidiary, as soon as reasonably practicable.
The board said that it is taking this action to protect the interests of its creditors. The FCA has been consulted about suspending the trade of its shares.
Studio has been a largely successful operation since switching from catalogue-based sales, when it was known as Express Gifts, to e-commerce. The company recently reported having over two million active customers – a 79 per cent increase over the last five years.
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