Asos fears as shares tumble: Fashion firm mulls hiring a restructuring expert in bid to revive its flagging fortunes
Asos shares tumbled amid fresh fears over its finances.
The fast fashion firm is considering hiring a restructuring expert as it seeks to revive its fortunes.
It entered talks with banks about bringing in a turnaround specialist after finance boss Katy Mecklenburgh said this month she is quitting.
Year from hell: Asos shares fell another 7.4% amid fresh fears over the fast fashion firm’s finances
Shore Capital retail analyst Eleonora Dani said Mecklenburgh was jumping from a ‘sinking ship’ as discussions began between beleaguered Asos and Barclays, HSBC and Lloyds Banking Group.
Sources told Bloomberg no decision has been reached. As Asos’s ‘year from hell’ continued, shares fell 7.4 per cent, or 43p, to 542p.
Its credit cover was cut in October, a move that has spelled the beginning of the end for retailers such as Woolworths, Comet and Toys ‘R’ Us.
AJ Bell investment director Russ Mould said bosses should have ‘fixed the roof while the sun was shining’ as the retailer enjoyed a lockdown-fuelled online shopping boom.
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