Asos slashes debt following Topshop sale

11th Sep 2024 09:16

(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.