Asos shares dive to a 12-year low as it scrambles to renegotiate the terms of its £350m debt pile


Asos shares dive to a 12-year low as it scrambles to renegotiate the terms of its £350m debt pile

  • The stock fell as much as 13 per cent to levels last seen in 2010, before recovering to close down 2.5 per cent, or 13.5p, to 518p  
  • Asos also confirmed that one of its insurers has cut its credit cover for suppliers
  • The sell-off is the latest headache for the business, which has lost 80 per cent of its value this year, leaving it worth just £500m

Asos shares plunged to a 12-year low amid worries about its finances. 

The stock fell as much as 13 per cent to levels last seen in 2010, before recovering to close down 2.5 per cent, or 13.5p, to 518p. 

The rout came as the online fashion retailer scrambles to renegotiate the terms of a £350m debt pile. Struggling Asos also confirmed that one of its insurers has cut its credit cover for suppliers. 

Asos shares plunged to a 12-year low amid worries about its finances

The sell-off is the latest headache for the business, which has lost 80 per cent of its value this year, leaving it worth just £500m. 

Asos has lost its finance boss, is under investigation by regulators over its ‘green’ claims and has faced complaints from suppliers about cancelled orders. It has also been hit by a drop in spending as the cost of living rises. 

When it reports its results tomorrow it is expected to show profits of just £24m for the year to September, down from £177m a year ago. 

Fears were raised of a cash crunch at Asos over the weekend after The Times reported that credit insurer Allianz Trade had cut its cover by more than half. 

Credit insurance is used to protect suppliers against the risk of customers going bust before they have paid for orders, forming a key part of retailer supply chains.

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