Online Retailer Asos Raises Funds for Cost Optimisation Programme

  • Asos raises £75m from shareholders
  • £275m asset-based refinancing deal with Bantry Bay till April 2026
  • 11% annual interest on credit
  • Investment vehicle of Bestseller owned by Anders Povlsen participates
  • Separate retail offer of ordinary shares worth up to £5m
  • New boss José Antonio Ramos Calamonte cuts costs with cost saving programme
  • Job cuts, warehouse closures and mass stock write-off

Asos has secured £75 million from shareholders, with three shareholders fully underwriting the fundraising including Bestseller’s investment vehicle owned by Anders Povlsen. The company also landed a lucrative asset-based financing deal with Bantry Bay worth £275 million, running till April 2026 and carrying an estimated 11% annual interest. Asos is implementing a cost saving and optimisation programme to tackle huge losses, which includes job cuts, warehouse closures, and mass stock write-offs. The retailer reported a pre-tax loss of £290.9 million for the six months ending February 28, compared to £15.8 million the previous year.

Factuality Level: 7
Factuality Justification: The article provides accurate and relevant information about Asos’ fundraising efforts, its asset-based financing deal, and cost-cutting measures taken by the company. However, it lacks some context on the overall market situation or industry trends that may have contributed to these actions.
Noise Level: 4
Noise Justification: The article provides relevant information about Asos’s fundraising efforts and cost-cutting measures, but it could benefit from more in-depth analysis of the company’s financial situation and strategies for recovery.
Financial Relevance: Yes
Financial Markets Impacted: Asos’s shareholders and financial situation
Financial Rating Justification: The article discusses Asos raising funds from shareholders, refinancing deal, and cost-cutting measures taken by the company to address its losses.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk