ASOS in talks to amend credit score facility phrases By Reuters

(Reuters) – British on-line style retailer ASOS (LON:) on Saturday stated it was in search of an modification to the phrases of its borrowing agreements.

“ASOS is within the closing phases of agreeing an modification to the long run monetary covenants in its Revolving Credit score Facility, which matures in July 2024,” the corporate stated in a press release.

The web style retailer’s lenders together with Barclays (LON:), HSBC and Lloyds Banking Group (LON:) had been lining up AlixPartners and legislation agency Clifford Likelihood to advise them on the unfolding scenario, Sky Information reported earlier.

ASOS stated final month it anticipated full-year revenue to be across the decrease finish of its steering after weaker than projected August gross sales.

It stated gross sales measured in fixed foreign money for the yr to Aug. 31 would rise by about 2% whereas web debt could be about 150 million kilos ($167.55 million), each under market consensus and firm steering.

ASOS stated on Saturday it retained a powerful liquidity place and referred to as the mortgage amendments a “prudent step”.

“This motion will give ASOS considerably elevated monetary flexibility, towards the unsure financial backdrop,” it stated.

British retail gross sales fell far more than anticipated in August, in one other signal that the economic system is sliding into recession as the price of dwelling crunch squeezes households’ disposable spending.

($1 = 0.8953 kilos)