Online fashion retailer Asos is in talks to renegotiate the terms of its bank facility amid squeezing household spending
Asos is in talks to renegotiate the terms of its bank facility amid squeezing household spending.
The online fashion retailer said it was “in the final stages of agreeing an amendment” to a £350m credit deal to give it “significantly increased financial flexibility in an uncertain economic environment”.
“Asos maintains a strong liquidity position and this is a prudent step in the current environment,” he said yesterday. The deal was due to expire in July 2024.
In the bag: The online fashion retailer said it was ‘in the final stages of agreeing an amendment’ to a £350m credit deal
Sky News has reported Asos lenders have appointed AlixPartners and Clifford Chance to advise them.
The report says “wider financial restructuring” has not been ruled out, but is not currently being considered.
A credit insurer has reduced its support, he added. Asos is due to update the city on Wednesday. Its shares have fallen 75% this year.
The Mail on Sunday reported in July that Asos had delayed some autumn orders amid fears of customers cutting back.