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Online fashion retailer Asos in talks to renegotiate the terms of its banking facility amid pressure on household spending
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Asos is in talks to renegotiate the terms of its banking facility amid pressure on household spending.
The online fashion retailer said it was “in the final stages of agreeing on an amendment” to a £350m loan deal to “give it significantly more financial flexibility against the uncertain economic backdrop”.
“Asos maintains a strong liquidity position and this is a cautious move in the current environment,” it said yesterday. The agreement was set to expire in July 2024.
In the bag: The online fashion retailer said it was ‘in the final stages of agreeing a change’ on a £350m credit deal
Sky News reported that Asos lenders have appointed AlixPartners and Clifford Chance to advise them.
The report states that a “wider financial restructuring” has not been ruled out, but is not currently being considered.
One credit insurer has reduced support, it added. Asos will update the City on Wednesday. The stock has fallen 75 percent this year.
The Mail on Sunday reported in July that Asos had postponed some orders for the fall over concerns that customers would cut back.