Asos has reached a refinancing agreement! Financing of 75 million pounds!
Asos secured £75m in refinancing
Business Dialogue has learned that Asos has raised £75 million from shareholders and reached an asset-based refinancing agreement to strengthen its balance sheet.
The retailer is currently in a plan to turn losses into profits and has signed a new long-term asset financing agreement worth £275 million with professional lending institution Bantry Bay, with a deadline of April 2026. The financing plan replaces the original revolving credit line of £350 million due to expire next year.
The online retailer insists that the new asset-based loan is a “ray of hope” and estimates an annual interest rate of 11% for the loan.
The £75 million fundraising activity was fully underwritten by three shareholders, including Bestseller Investment Tool owned by Anders Povlsen.
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Asos has also launched a separate retail offer of up to £5 million in ordinary shares.
The retailer said: “This new capital structure provides greater flexibility in a challenging macroeconomic environment and stability focused on long-term value creation.”
At the time of the fundraising, Asos’ new boss, José Antonio Ramos Calamonte, hopes to simplify the business.
This is a £300 million cost-saving and profit optimization plan, which former Inditex CEO Calamonte called the “agenda for change” because it hopes to completely reform its business model, which has so far resulted in staff reductions, warehouse closures, and massive inventory write-offs.
Business Dialogue understands that the online retailer posted a pre-tax loss of £290.9 million for the six months ending February 28, compared to a loss of £15.8 million in the same period last year.
The editor ✎Estella/AMZ123
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