Asos suppliers have started to cut ties with the online fashion retailer after credit insurers withdrew cover due to concerns over its decreasing profits The Times has reported.
Recently, Asos reported a half-year loss amid “ongoing challenges in the operating environment”.
In the six months ended 28 February 2023, the group reported an adjusted loss of £69.4 million, compared with a profit and an adjusted profit before tax of £87.4 million.
Click here to sign up for our newsletter
This resulted in the embattled online retailer being demoted from the FTSE 250 index last week, also as a result of its falling profits, with news emerging that Asos has received a £1 billion approach from Turkish online retailer Trendyol, backed by Chinese giant Alibaba.
The deal would have valued the online-only retailer at between £10 and £12 a share, substantially higher than the £3.50 they are now valued at.
However, most recently, Frasers Group has upped its stake in Asos, from 7.4% to 8.8%, up from 5% in October last year.
