ASOS to Sell Lichfield Fulfilment Centre to Marks & Spencer for $90 Million
ASOS Divests Non-Core Asset to Streamline Operations
May 11 (Reuters) - ASOS said on Monday it will sell its Lichfield fulfilment centre to rival Marks & Spencer for 66 million pounds ($89.7 million), as the British retailer looks to simplify operations and dispose of non-core assets.
Key Details of the Transaction
Here are some details:
Financial Impact
• ASOS expects the sale of the facility, which is used by retailers to store products and process orders, to generate a one-off pre-tax profit of 85 million pounds and annual cash cost savings of 6 million pounds.
Strategic Rationale
• ASOS has been focused on reducing costs and trimming operations as it grapples with weaker consumer spending and inflationary pressures.
Addressing Excess Capacity
• The disposal is aimed to address the company's excess capacity, the retailer said, adding that its fulfilment centres in Barnsley and Berlin give it enough capacity for future growth.
Timeline and Future Assets
• ASOS expects the disposal to be completed during the second half of fiscal year 2026.
• The company said its Atlanta fulfilment centre will be its only non-core asset.
Additional Information
($1 = 0.7358 pounds)
(Reporting by Simone Lobo in Bengaluru; Editing by Sherry Jacob-Phillips)
