Asos slashes debt following Topshop sale
By Abigail Townsend
Date: Wednesday 11 Sep 2024
(Sharecast News) - Asos has nearly halved its debt, the fast-fashion retailer confirmed on Wednesday, following the sale of its majority stake in Topshop and Topman.
The online-only business said net debt had been reduced by around £150m following the sale and a refinancing of its convertible bonds.
Danish retail billionaire Anders Holch Povlsen agreed to buy Asos's majority stake in its Topshop and Topman brands in a £135m deal struck last week.
Asos acquired both brands, along with Miss Selfridge and activewear brand HIIT, for £265m in 2021, after Philip Green's retail empire Arcadia collapsed into administration.
The online retailer has also completed a refinancing, which saw £253m exchanged into convertible bonds due 2028, from convertible bonds due 2026.
A further £173.4m of the 2026 bonds was accepted for repurchase, while £73.6m remains.
As a result, Asos confirmed it had been able to significantly reduce its debt. At the interim results published in April, net debt in the 26 weeks to 3 March 2024 stood at £348.8m.
As at 0915 BST, shares in Asos were up 2% at 433.8p.
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