Asos has raised £75 million via a share issue as part of its efforts to return to profitability.

The online retailer has also arranged an asset-based loan from Bantry Bay until April 2026. This replaces a £350 million credit facility which was due to expire next year.

Asos estimates it will pay an annual interest rate of 11 per cent and expects cash financing costs in the second half of this year to be around £55 million.

The fashion retailer also said it is making changes to its operating model to return the business to profit. As part of its “driving change agenda” the company plans to reduce complexity across its supply chain, optimise its cost base and maintain a flexible balance sheet.

The company recently announced a £290 million pre-tax loss following weak sales results across the six months to 28 February. The loss includes a £128.2 million stock write-off and £49.4 million worth of property impairments, as well as closure costs after it streamlined its head office and logistics footprint.

Sales in the UK dropped by 10 per cent during the period and by seven per cent in the US. European sales remained flat, while the rest of the world saw sales decline by 12 per cent.

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