ASOS to discontinue local China operations

Commenting on the closure, Nick Beighton, CEO of ASOS said, “We will continue to do business in China. We are simply serving our growing customer base there in a more efficient, less costly manner.”

It is estimated that the financial impacts of this decision are one-off closure costs of up to £10 million, of which the majority will be non-cash, and operating losses to closure in the current financial year of c.£4 million.

These amounts are pre-tax, and will be presented as discontinued operations at the year end. (MCJ)

ASOS plc