Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Asos shares dip on report retailer is in talks over hiring turnaround expert

Published 12/12/2022, 06:38 AM
Updated 12/12/2022, 06:40 AM
© Reuters.

By Scott Kanowsky 

Investing.com -- Shares in Asos PLC (LON:ASOS) fell on Monday after a news report said the U.K. online fashion retailer is in talks over potentially hiring a restructuring expert in the wake of the departure of its former chief financial officer.

In a report citing sources familiar with the matter, Bloomberg News said Asos and its lenders are discussing the move with a "number" of turnaround professionals, but no formal decision has yet been made.

Asos has been struggling with a simultaneous slump in customer demand and rising input costs, particularly from energy expenses and wages. The company has warned it will post a loss in the first half of its current fiscal year, while free cash flow is seen ebbing to zero at best.

The appointment of a restructuring expert is seen as a path towards possibly reviving its outlook, and a sign that it is making good on an earlier promise to strengthen its leadership team.

The talks were sparked by interim finance chief Katy Mecklenburgh's decision to resign earlier this month, according to the Bloomberg News report. Mecklenburgh will stay on for the next six months before she starts a new role at information technology firm Softcat, it added.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.