​Asos profits jump as it orders £200m equity raise to cope with coronavirus


Asos has launched an equity share raise and extended its revolving credit facility to deal with the impact coronavirus on its business.

The fashion etailer is set to launch an equity share raise in order to protect its business from disrupted trading as a result of coronavirus, through which it expects to raise up to 18.8% of its existing share capital, or more than £200m.

The online retailer also plans to extend it existing revolving credit facility by £60-80m and apply to access the Bank of England’s Covid-19 corporate finance facility set up to lend money to larger companies in a bid to mitigate coronavirus-induced business disruption.

Asos said sales have plummeted between 20% and 25% in the last three weeks as a result of coronavirus and its equity raise and increased credit facility have been put in place in part to “weather no improvement in current trading for at least 18 months.”

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading

Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on Retail-Week.com
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.