Asos Shares Plummet Amid Loan Covenant Renegotiation Talks

Troubled Fast-Fashion Retailer Faces Uncertain Future

London, UK - October 17, 2022

Shares in British online fashion retailer Asos have plunged after it confirmed it is in talks with lenders over changing the terms of a £350 million borrowing facility.

The company said in a statement that it is seeking to "amend certain terms" of the facility, which was originally agreed in 2019. Asos did not provide any further details about the proposed changes, but said that it would update shareholders in due course.

The news sent Asos shares down by more than 20% in early trading on Monday. The stock has now lost more than half of its value since the start of the year.

Asos has been struggling in recent months due to a number of factors, including rising costs, supply chain disruption, and the cost-of-living crisis. The company has also been criticized for its poor customer service and slow delivery times.

The loan covenant renegotiation talks are the latest sign that Asos is facing an uncertain future. The company has already issued two profit warnings this year, and it is now facing the prospect of having to raise new capital.