ASOS may be bought by eBay
This could be what caused shares for the fashion e-tailer to increase by seven per cent this week
ASOS experienced a major drop in its shares earlier this year – the company saw a plummet of sixty per cent after issuing a profit warning and having suffered a warehouse fire in South Yorkshire. However, with rumours that American e-commerce giant eBay is in talks to buy ASOS, shares for the latter climbed seven per cent.
The company estimated that in the fire which ripped through its Barnsley warehouse, twenty per cent of its total stock there was compromised. A business expansion to China resulted in higher warehouse costs and start-up losses, but with eBay's possible deal with ASOS, the British online store may yet go into a new, more profitable phase.