ASOS PLC (LSE:ASC) confirmed, in response to media speculation over the weekend, that it is in the final stages of agreeing on an amendment to the future financial covenants in its revolving credit facility
The facility matures in 2024, and the online fashion retailer said the amendment gives it “significantly increased financial flexibility, against the uncertain economic backdrop”.
ASOS also said it retains a strong liquidity position and that this a prudent step in the current environment.
The statement came after Sky News reported that the company was in advanced talks with the banks behind its £350m revolving credit facility to agree on an amendment.
Sky News said lenders including Barclays, HSBC and Lloyds Banking Group were lining up AlixPartners and law firm Clifford Chance to advise them on the unfolding situation.
ASOS, which is announcing its full-year results on 19 October, has previously warned that this year’s profits are likely to be at the bottom end of the £20mln-£60mln guidance given in June, following low sales growth.