LONDON: ASOS plc has agreed to sell its Lichfield fulfilment centre to Marks and Spencer Plc for net proceeds of at least £66 million, the online fashion retailer announced Monday, marking the latest step in its operational restructuring.
The transaction, which follows a competitive sale process, is expected to generate annual cash savings of approximately £6 million in rent and other occupancy costs. The disposal constitutes a significant transaction under UK Listing Rule 7, exceeding the 25% threshold under the consideration-to-market-capitalisation test.
ASOS Chief Executive Jose Antonio Ramos said the sale strengthens the company’s balance sheet and improves capital efficiency.
“This transaction enables us to unlock value from one of our non-core assets while reducing our ongoing cost base,” Ramos said. “ASOS is a well-invested business and we have significant capacity to support future growth.”
The company said its fulfilment centres in Barnsley, England, and Berlin provide sufficient capacity to support future growth following the disposal. ASOS had previously mothballed the Lichfield site to address excess capacity.
The transaction is expected to complete during the second half of fiscal 2026 and generate a one-off profit before tax of about £85 million. ASOS reported a cash position of £209.5 million as of March 1, with pro forma net debt excluding lease liabilities of about £228 million following the sale.
The company said it has one remaining non-core asset — its Atlanta fulfilment centre — which has been fully written down.
Editor’s commentary: Selling a mothballed warehouse to M&S for £66m while pocketing £85m in paper profit? That’s financial engineering, not fashion retail. Ramos talks capital efficiency, but ASOS’s core problem remains: making money selling clothes, not property. The Atlanta centre is already written off — meaning shareholders ate that loss. This feels less like a turnaround and more like a yard sale.