Asos to write off stock and cut costs as shoppers rein in spending on fashion

Asos says it is ‘refreshing the culture’ of the business after becoming too reliant on discounting to attract shoppers. Photograph: Dado Ruvić/Reuters

Asos is to write off more than £100m of stock and cut costs after diving into the red after its annual sales growth almost halted as shoppers hit by the cost of living crisis reined in spending on fashion.

The online fashion retailer said it had agreed a £650m banking facility to give it “financial flexibility” and was aiming to rearrange its operations by cutting costs, improving management of stock and “refreshing the culture” of the business to become more open to new ideas.