// Asos has been targeted by short-seller Shadowfall, which believes that the retailer will be forced to raise more cash from shareholders
// Asos is the second most shorted stock in the FTSE 250
Struggling online retailer Asos has been hit by a big short attack from the hedge fund Shadowfall, which believes that the business will be forced to raise more cash from shareholders.
Matthew Earl, boss of investment firm ShadowFall, has built a £4m short position in Asos, according to the Sunday Times.
Short-sellers hope to profit from falling share prices by selling shares they have borrowed and then buying them back in the future at a lower price.
Asos is the second most shorted stock in the FTSE 250, with 10.98% of its outstanding shares on loan, according to S&P Global Market Intelligence.
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Online fashion retailers like Asos have fallen out of favour in recent months as demand has dipped following the highs of the pandemic.
Shares in the retailer have fallen over 44% in the last year, bringing its market capitalisation to around £780m.
Back in October last year, it posted a £9.8m full-year operating loss blaming “supply chain disruption and macroeconomic challenges”.
Since then, new boss Jose Antonio Ramos Calamonte has unveiled his 12-month turnaround plan, which will focus on both a number of “decisive, short-term operational measures to simplify the business, alongside steps to unlock longer-term sustainable growth”.
Asos also revealed it would be axing more than 100 roles in a bid to cut costs across the business late last year.
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