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ASOS in talks with lenders to amend phrases of $391 million facility By Reuters

© Reuters. FILE PHOTO: A mannequin walks on an in-house catwalk on the ASOS headquarters in London, April 1, 2014. REUTERS/Suzanne Plunkett

LONDON (Reuters) -British on-line vogue retailer ASOS (LON:) is in talks with lenders to amend the phrases of its 350 million pound ($391 million) borrowing facility, it stated on Saturday.

“ASOS … confirms that it’s within the last phases of agreeing an modification to the longer term monetary covenants in its revolving credit score facility, which matures in July 2024,” it stated in a press release.

The retailer stated the transfer would give it considerably elevated monetary flexibility, in opposition to an unsure financial backdrop.

“ASOS retains a robust liquidity place and this can be a prudent step within the present surroundings,” it stated.

The assertion was issued after Sky Information reported that ASOS had not too long ago approached its lenders, together with Barclays (LON:), HSBC and Lloyds Banking Group (LON:), to amend its borrowing agreements.

Sky Information stated the lenders had been lining up AlixPartners and legislation agency Clifford Likelihood to advise them on an “unfolding state of affairs”.

ASOS, which sells vogue to 20-somethings, was an early pandemic winner as locked-down shoppers shopped on-line however has struggled as folks returned to shops and its shares have slumped 78% to date this 12 months.

It warned final month that it anticipated revenue earlier than tax within the 12 months to Aug. 31 to be across the backside finish of its steering of 20 million kilos to 60 million kilos after weaker than projected August gross sales.

It stated the August shortfall mirrored the affect of accelerating inflationary pressures on shoppers and a sluggish begin to autumn/winter purchasing.

ASOS additionally forecast full-year web debt of about 150 million kilos, which was increased than earlier steering.

The Sky Information report additionally stated a minimum of one main commerce credit score insurer which gives cowl to ASOS’s suppliers within the occasion of its failure to pay them is alleged to have determined to scale back its assist.

“This occurred in the direction of the tip of August and there was no opposed affect on buying and selling relationships with our suppliers,” ASOS stated in response.

ASOS is because of report full-year outcomes on Wednesday.

($1 = 0.8953 kilos)



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