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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
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ASOS
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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.

 

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