Asos secures £75m fundraising to help turnaround plan

Quick-fashion agency Asos has raised £75m to help its turnaround plan.

The web retail enterprise confirmed on Friday that it has accomplished a share putting, with 17.9 million shares at 418.1p every to safe the money injection.

Earlier this month, it revealed losses of greater than £290m for the half-year to February, because it booked prices from restructuring efforts and decrease gross sales as buyer spending comes beneath stress.

Asos stated the recent funding might be used for its turnaround plan, which can embody shaking up the corporate’s strategy to purchasing and merchandising, and giving the agency extra monetary headroom.

Asos instructed buyers it has entered right into a £200m senior time period mortgage and a £75m revolving facility with specialist lender Bantry Bay Capital by way of to April 2026.

The brand new credit score traces will exchange its present £350m facility which was as a consequence of expire subsequent yr.

AJ Bell funding director Russ Mould stated: “The fast-fashion on-line retailer hopes this may create a strong base for the corporate’s restoration.

“Nonetheless, with the corporate paying excessive charges of curiosity on its newly agreed debt, a lot of the cash raised from shareholders will virtually instantly be going out the door on servicing its borrowings.

“The hazard is Asos hasn’t raised sufficient this time spherical, both by way of selection or necessity, and it must dig out the begging bowl once more earlier than too lengthy.”

Shares initially opened increased after the replace however swung decrease after analysts digested the replace.

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