ASOS secures £237.5m refinancing as turnaround enters final phase
ASOS has announced a major refinancing deal that it says will strengthen its balance sheet and support the final phase of its multi-year turnaround strategy.
The online fashion retailer has replaced its existing Asset Backed Loan facility with a new secured term loan and Delayed Draw Term Loan (DDTL), arranged through a new syndicate of private lenders.
The refinancing provides £87.5 million in additional liquidity headroom, extends the company’s financial runway to 2030 and reduces annual cash interest costs by around £5 million compared to its previous Bantry Bay facility.
The move marks a significant step forward in ASOS’s ongoing transformation, as the business seeks to restore profitability.
Aaron Izzard, Chief Financial Officer at ASOS, said: "I’m pleased to announce the further strengthening of our balance sheet and financial flexibility through this strategic refinancing.
"As well as offering improved financial terms, it better positions us to deliver on the final phase of our turnaround strategy and growth plans with greater confidence and resilience."
The new financing package includes a £150 million term loan and an £87.5 million DDTL, both committed for five years, maturing in November 2030. The structure effectively replaces the company’s previous £75 million revolving credit facility and £50 million accordion facility, which were due to expire in 2027.
ASOS said the refinancing reflects "enhanced profitability and significant strategic progress" achieved through the first two phases of its turnaround plan, which have focused on improving operational resilience, reducing inventory, and rebuilding sustainable margins.
The refinancing follows a period of steady improvement for ASOS, which in its latest trading update reported a 350-basis-point rise in gross profit margin year-on-year and a more than 60% increase in adjusted earnings.
While FY25 sales came in below expectations amid a soft consumer backdrop, the company highlighted strong gains in profitability thanks to a sharper focus on "higher-quality" sales, cost discipline, and a leaner operating model.
