Asos’ former credit insurers reinstate cover as it works on turnaround plan

The move highlights a renewed confidence in Asos’ financial performance and stability following a tumultuous time of falling profits.

Insurers Atradius and Coface restored cover last month after first withdrawing in 2023 due to the online retailer’s performance, according to The Times.

Allianz Trade is understood to be the only company left to restore cover after withdrawing two years ago. Cartan Trade has recently just opened up cover for Asos for the first time.

An Asos shareholder said: “this is another positive sign that the turnaround is working after the recent refinancing and old inventory being substantially reduced over the past year”.

The retailer struggled after the pandemic as the cost of living crisis, low consumer confidence and competitors such as Shein gained customers.

Asos has been working on a turnaround plan under chief executive José Antonio Ramos Calamonte, with a focus on reducing inventory levels, cutting discounts, and implementing a test-and-react model.

It also recently announced plans to close its main US distribution centre in the second half of the year and fulfil orders from the UK in a bid to increase profitability and improve speed to market for its products.

Ramos Calamonte said in November that actions taken over the past two years were beginning to pay off.

It now expects to see a £10m-£20m benefit to EBITDA from the changes from the 2026 financial year, as well as a similar benefit to free cash flow.