Online fashion retailer ASOS has successfully raised £75 million in cash from shareholders in a bid to improve its financial position. The company secured the support of its three largest shareholders, including Bestseller owner Anders Povlsen, who have underwritten the full amount of the placement. Povlsen’s investment vehicle contributed £21 million as part of the fundraising effort.

In addition to the shareholder cash injection, ASOS has also launched a retail offer of its shares, which could raise up to £5 million. The new ordinary shares are priced at 418.1p, reflecting the closing price on May 25.

To further bolster its financial position, ASOS has secured a substantial £275 million loan and credit facility from Bantry Bay Capital, replacing its existing arrangements that were set to expire next year. This move comes amidst falling sales, increased returns following the pandemic, and a recent loss in the six-month reporting period ending in February. The company plans to use these funds to support its new commercial model, which involves a significant shift in its buying and merchandising approach. ASOS aims to improve stock management discipline, reduce complexity in the supply chain, optimize costs, and enhance operational efficiency.

ASOS is also committed to investing in enhancing the customer experience, believing that a strong and flexible balance sheet is essential for maintaining profitability and generating cash across all markets.

This successful round of financing will provide ASOS with the necessary resources to tackle ongoing challenges and position itself for long-term success in the fiercely competitive online fashion industry.

For more information on ASOS and its recent financial initiatives, visit their investor relations website.

To learn more about the online fashion industry and its trends, check out this Euromonitor International report.