Asos confirms £350m credit facility as shoppers dial back spending
Troubled fashion retailer Asos has today confirmed it is in the final stages of arranging a £350m credit facility with financial backers, as consumers dial back spending during the cost of living crisis.
In a statement today, Asos said the credit facility, which matures in July 2024, would “significantly” boost its financial flexibility against the “uncertain economic backdrop”.
The retailer insisted that it remains in a “strong liquidity position” and this is a prudent step in the current environment.
Last month, Asos cautioned its profits after sales fell below expectations in August.
The online fashion giant said it saw “good growth” in June and July and expects total sales for the year to August 31 to remain within market expectations.
However, it added that it is now witnessing “the impact of accelerating inflationary pressures on consumers and a slow start to Autumn/Winter shopping.”