Credit insurers Atradius and Coface have restored their cover for Asos’ clothes suppliers, indicating revived confidence in its financial stability.
The insurance companies restored their cover in January, after withdrawing it in 2023 amid worries over the fashion giant’s falling profits, The Times reported.
Additionally, credit insurer Cartan Trade has just opened up cover for the first time.
Allianz Trade is thought to be the only firm left to reinstate its cover, after completely scrapping it two years ago.
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An Asos shareholder said: “This is another positive sign that the turnaround is working after the recent refinancing and old inventory being substantially reduced over the past year.”
It comes as the fashion retailer pushes ahead with its turnaround efforts, having navigated a challenging few years.
In November, it posted a pre-tax loss of £379.3m for the year ending 1 September, down from a loss of £296.7m the previous year.
The brand has been met with competition from the likes of Shein, Temu and Vinted as shoppers flock to cheaper rivals.
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