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Asos reportedly in talks for 350 million pound credit facility with lenders

By Rachel Douglass

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Business

Image: Asos Plc

E-commerce fashion company Asos is said to be in talks to renegotiate terms on its bank facility after it was revealed that its biggest lenders had hired advisors.

The retailer is reportedly seeking a 350 million pound credit boost as it aims to make amendments to its borrowing agreements, according to a report by Sky News.

Now said to be in the final stages of reaching an agreement, the publication added that potential lenders have included Barclays, HSBC and Lloyds Banking Group.

The report further noted, however, that at least one major credit insurer, which provides cover to Asos’ suppliers in the event of its failure to pay them, has decided to reduce its support of the company.

The 350 million pound banking facility was due to mature in July 2024, with the request for amendment designed to ensure “optimal financial flexibility” amid the current macroeconomic issues.

Speaking to Retail Gazette, the company commented on the agreement: “Asos retains a strong liquidity position and this is a prudent step in the current environment.

“This action will give Asos significantly increased financial flexibility, against the uncertain economic backdrop. Asos retains a strong liquidity position and this is a prudent step in the current environment.”

Asos