Asos shares fall due to poor report
2022.12.12 06:56
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Asos shares fall due to poor report
Budrigannews.com – Asos PLC shares (LON:) the U.K. online fashion retailer is in talks about hiring a restructuring expert in the wake of the departure of its former chief financial officer, according to a report on Monday.
According to Bloomberg News, which cited sources with knowledge of the situation, Asos and its lenders are talking about the move with a “number” of turnaround professionals, but no formal decision has been made yet.
Asos has been struggling with rising input costs, particularly energy costs and wages, at the same time that customer demand has been declining. Free cash flow is expected to decrease to zero at best, and the company has stated that it will report a loss in the first half of the current fiscal year.
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It is viewed as a means of possibly reviving its outlook and a sign that it is keeping its earlier promise to strengthen its leadership team by hiring a restructuring expert.
According to a Bloomberg News report, the resignation of interim finance chief Katy Mecklenburgh earlier this month sparked the discussions. It added that Mecklenburgh will remain on for the following six months before beginning a new position at Softcat, an information technology company.
