(Bloomberg) —
(Bloomberg) —
British fast-fashion company Asos Plc said it was close to agreeing on changes to its banking facilities to give it “increased financial flexibility.”
The company said in a statement Saturday that it was in the “final stages” of talks to amend covenants on credit facilities that are due to expire in 2024.
The comments came as Sky News reported that the firm’s lenders were hiring restructuring advisers, including AlixPartners.
“Asos retains a strong liquidity position and this is a prudent step in the current environment,” the company said.
The online-only retailer is having a difficult year and issued a profit warning in June as the cost-of-living crisis sapped consumers’ spending power.
The company warned in April that its earnings goal was at risk from inflation and disruption from the war in Ukraine.
Once a stock-market favorite, Asos has struggled with supply chain issues and the move away from online shopping after Covid restrictions were lifted.
The stock has lost around three-quarters of its value this year.
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