British clothing group Asos Plc has confirmed media reports that the company is in talks to renegotiate the terms of its bank loans after it was revealed that its main lenders have hired advisers.
“Asos (…) confirms that it is in the final stages of agreeing to amend future financial clauses on its revolving credit facility, which matures in July 2024,” the company said in a statement Monday.
“This move will give Asos significantly more financial flexibility against the background of the uncertain economic situation. Asos continues to have a strong cash position and this move is prudent in the current environment.
According to a report by Sky News, the retailer is looking to increase its loan by £350m (around €403m) in order to amend its loan arrangements.
According to British broadcaster, potential lenders include Barclays, HSBC and Lloyds Banking Group, which are said to be in the final stages of an agreement.
However, according to the report, at least one major credit insurer, which protects Asos’ suppliers in the event of a default, has decided to reduce its support for the company.