Asos is seeking to raise £75 million from shareholders and has secured new financing in a bid to strengthen its balance sheet.
The online retail giant, which recently reported a half-year loss due to “ongoing challenges in the operating environment”, has agreed to a new long-term £275 million asset-based financing facility with Bantry Bay until April 2026, replacing its current facilities which were due to expire next year.
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However, the company also estimates an annual interest rate of 11% on the new loans and expects the cost of the financing deal to total £55 million in the second half of its 2022/23 financial year.
The £75 million fundraising is fully underwritten by three shareholders, including the investment vehicle of Bestseller Danish fashion group, which is owned by Anders Povlsen and Camelot Capital Partners.
The move comes as Asos also launched a separate £5 million retail offer.
“This new capital structure provides increased flexibility against a challenging macro-economic backdrop and the stability to focus on long-term value creation. The new asset-based financing facility provides simplicity under a single lender and is covenant-light,” Asos said in a statement.
The news comes as Asos recently announced its partnership with rental marketplace Hirestreet to launch its first-ever rental edit.
