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Restructuring Hire Under Discussion at Asos: Report

Despite the struggles at Asos, the British fashion e-tailer continues to look at ways to green its footprint.

The retailer and its lenders are discussing whether or not to hire a restructuring expert, Fortune reported, after its chief financial officer (CFO), Matt Dunn, stepped down on Oct. 31. Interim CFO Katy Mecklenburgh resigned earlier this month and will officially step down May 2023. The talks with Asos’s lenders were prompted after Mecklenburgh’s departure was announced, according to Fortune.

Amid these challenges, Asos is now working with Hived, which was founded in 2021 with the mission of building the first emission-free delivery platform for the masses, to fulfilling its Asos Instant same-day delivery orders to the Greater London metro area of roughly 9.5 million residents.

“Through Asos Instant, Asos customers can place an order during the day and receive it to their door that evening—vital for those last-minute purchases that just can’t wait,” Adam Scholes, director of delivery solutions at Asos, said. “It’s great to be launching this new partnership with Hived for Asos Instant deliveries into Greater London, as we continue our journey to reduce emissions from our operations.”

Hived operates an entirely electric fleet of vans, cars and bikes and offer same-day, next-day and two-day shipping options to all of Greater London. The company reported a 99.99 percent on-time delivery rate and a 99 percent first-time success rate. 

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“We have successfully scaled our parcel delivery network to support large enterprises focusing their delivery strategy on customer service and sustainability goals,” Hived co-CEO Murvah Iqbal said. “Asos is one of the largest global fashion retailers, and it is fantastic to see their commitment to innovative solutions.”

This partnership may be a strategic move in attempts for the Topshop owner to restructure its operations after posting a full-year 9.8 million pounds ($11.9 million) loss in October following new-CEO José Ramos Calamonte’s attempts to “refresh the culture,” the company said when reporting final results for the year to Aug. 31, 2022. Also in October, Asos successfully renegotiated the terms of its 350 million ($429 million) revolving credit facility, though the extension only lasts until 2024. The e-tailer’s lenders include Barclays, HSBC and Lloyds Banking Group, which are being advised by companies including AlixPartners.

In November, the British nameplate confirmed a cost-cutting strategy that put roughly 100 workers out of a job. Despite the financial troubles, Frasers Group recently increased its stake in the company to just over 5 percent.

Asos did not immediately respond to Sourcing Journal’s request for comment.