Online retailer Asos is to write off more than £100m of stock, as shoppers cut their spending on clothing.

The fashion retailer said it had agreed a £650m banking facility to give it "financial flexibility" and had plans to cut costs, improve stock management and change the culture of the business, as reported by The Guardian.

Sales rose one per cent to £3.94bn in the year to August 21, 2022, with Asos suffering a £32m pre-tax loss, compared to a £177m profit a year before. The group has built up nearly £153m of net debts, compared with holding £200m of net cash the previous year.

The retailer said sales in the second half of the financial year had been worse than expected, as customers reduced spending because of the cost-of-living crisis and also returned more items, as they moved back into fitted clothing after the casualwear of the pandemic.

Asos said the business had become too complex, had allowed costs to rise too much and lacked scale in US, France and Germany. It had also become too reliant on discounting to attract shoppers.

The retailer's disappointing sales growth was despite sales of its new Topshop brand more than doubling.

Asos has now pledged to now buy stock more frequently and closer to the time it will go on sale, in an effort to ensure it has the right fashions.