ANDREA FELSTED: This is why Asos should consider selling Topshop

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ANDREA FELSTED: This is why Asos should consider selling Topshop
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Asos faces a potential shareholder rebellion at its annual meeting on Wednesday

Asos is looking as squeezed as one of its bustier dresses.

If Asos could achieve a similar price to what it paid — about £300m — it would bolster the balance sheet. It recently renegotiated the terms of a £350m revolving credit facility, with tests of its financial strength suspended until 2024. The facility matures in 2024, so Asos will need to refinance this year. Bloomberg News reported recently that the company was discussing whether to add restructuring expertise to its finance team.

Asos recognises the shortcomings. New CEO Jose Antonio Ramos Calamonte is reviewing the way Asos reaches its customers, which could give Topshop’s marketing more clout. But there is a strong argument for the name returning to the British high street.

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