Disposal supports debt reduction strategy
Shares in Asos Plc (LSE:ASC) rose more than 8% on Wednesday after the online fashion retailer announced the completion of the sale of its Atlanta fulfilment centre, marking another milestone in its efforts to reduce debt and simplify its balance sheet.
The transaction, which the company classified as containing inside information, includes the assignment of the warehouse to “a global consumer brand” and the sale of the site’s automation equipment to a separate purchaser.
Asset sale delivers cash boost and cost savings
Asos said the transaction generated net proceeds of approximately £48 million, while also reducing annual cash costs by around £6 million at current exchange rates.
The disposal is expected to result in a one-off pre-tax profit of about £78 million, reflecting adjustments to associated property liabilities. The gain will be recognised in the company’s financial results for the 2026 financial year.
The Atlanta sale follows several recent initiatives aimed at strengthening Asos’ financial position, including the repayment of its 2026 convertible bonds in April and the earlier disposal of its Lichfield fulfilment centre, which generated net proceeds of £67 million.
Following the latest transaction, the proceeds will be added to the group’s cash balance of £209.5 million, as reported on 1 March.
Chief executive Jose Antonio Ramos said: “The disposal of Atlanta is another clear demonstration of us delivering on our commitments – strengthening the balance sheet, simplifying the business and maintaining strict discipline in how we allocate capital.”
Asos added that the transaction completes its programme of non-core asset disposals, noting that the Atlanta facility had not been operational during previous reporting periods.
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