Asos is in talks to renegotiate the terms of its bank loan amid cuts in household spending.
The online fashion retailer said it was “in the final stages of negotiating an amendment” to a £350m loan agreement to give it “significantly increased financial flexibility in an uncertain economic environment”.
“Asos maintains a strong liquidity position, which is a smart move in the current environment,” they said yesterday. The agreement was to be repaid in July 2024.
In the bag: The online fashion retailer said it was “in the final stages of agreeing on an amendment” to a £350m loan deal.
Sky News reported that Asos lenders have appointed AlixPartners and Clifford Chance to advise.
The report states that “broader financial restructuring” is not ruled out, but is not currently being considered.
He added that one credit insurer had cut support. Asos is due to update the city on Wednesday. Its shares are down 75 percent this year.
In July, the Mail on Sunday reported that Asos had delayed some orders for the fall due to concerns that customers were cutting costs.
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