ASOS Shares Plummet Amid Loan Covenant Renegotiation Talks

Troubled Fast-Fashion Retailer Faces Uncertain Future

Shares tank as ASOS confirms it is in discussions

London, UK - October 17, 2022 - Shares of British online fashion retailer ASOS (ASOSL) took a sharp dive on Monday after the company confirmed it is in talks with lenders to change the terms of a £350 million borrowing facility.

The move comes as ASOS faces increasing pressure from rising costs and a slowdown in consumer spending. The company has already reported two profit warnings this year, and its share price has fallen by more than 80% since the start of the year.

In a statement, ASOS said it is "in discussions with our lenders to amend the terms of our existing borrowing facilities." The company added that it is "confident that we will be able to reach an agreement that is in the best interests of all stakeholders."

However, analysts are concerned that ASOS may be forced to sell new shares or assets to raise capital. This could further dilute existing shareholders and weigh on the company's share price.

The news of ASOS's loan covenant renegotiation talks has raised concerns about the future of the fast-fashion retailer. While the company has been a pioneer in the online fashion space, it has faced increasing competition from both traditional and online rivals.

It remains to be seen whether ASOS will be able to weather the current storm and return to profitability. However, the company's share price plunge is a clear indication that investors are losing confidence in its future.