Asos in credit talks ‘amid uncertainty’

ASOS is in talks to renegotiate terms on its bank facility amid a squeeze on household spending.

The online fashion retailer said it was ‘in the final stages of agreeing an amendment’ on a £350million credit agreement to give it ‘significantly increased financial flexibility against the uncertain economic backdrop’.

‘Asos retains a strong liquidity position and this is a prudent step in the current environment,’ it said yesterday. The agreement was due to mature in July 2024. Sky News reported that Asos lenders have appointed AlixPartners and Clifford Chance to advise them.

The report said a ‘wider financial restructuring’ had not been ruled out, but is not being considered at present. One credit insurer has reduced support, it added. Asos is due to update the City on Wednesday. It shares have fallen 75 per cent this year.

The Mail on Sunday reported in July that Asos had delayed some orders for the autumn amid concerns customers were cutting back.