Watchdog launches probe into Studio Retail Group accountant
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Watchdog launches investigation into accountant Mazars about his audit of collapsed Studio Retail Group
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The accountants who audited Studio Retail Group’s books before it collapsed and was bought by Mike Ashley are under investigation.
The Financial Reporting Council (FRC) has launched an investigation into Mazars over his work at the affected home shopping company for the year to March 2021.
Studio Retail, which sells clothing, homeware, toys and gifts, went bankrupt in February this year before being bailed out by Ashley’s Frasers Group in a £27 million deal.
Questions: The Financial Reporting Council has launched an investigation into Mazars about her work at Studio Retail Group for the year to March 2021
Mazars said he was “fully cooperating” with the FRC investigation.
The investigation could lead to a fine for the company, one of the UK’s largest accountants outside the so-called Big Four.
The FRC may also fine or penalize the individual accountants involved. Frasers Group declined to comment on the investigation because it concerns accounts prior to the company’s acquisition.
It comes as Ashley prepares to step down from the group at this month’s annual meeting, with his son-in-law Michael Murray in charge.
Murray has vowed to build bridges with the city after years of criticism of Ashley’s management style.
Studio Retail collapsed under pressure from rising shipping costs and supply chain delays, causing more than usual inventory and cash flow issues