ASOS has turned to shareholders to raise funds in the face of the COVID-19 pandemic.
The online fashion retailer appointed law firm Slaughter and May as its advisers in a fundraising to mitigate the coronovirus crisis.
The company sought to raise around £247 million as the lockdown impacted consumer appetite for fashion.The net proceeds from the placing will be used to provide sufficient liquidity and flexibility to manage ASOS through and beyond the period of expected and continuing disruption caused by the ongoing COVID-19 pandemic.
ASOS revealed in its half-year results released alongside the placing announcement, that sales had fallen between 20 and 25 per cent in recent weeks. However, leisurewear and health and beauty sales saw growth.
Slaughter and May advised ASOS as a combined team with Cravath, Swaine & Moore which advised on US law and Mourant Ozannes which advised on Jersey law.