FAST FASHION FIRM Asos has raised £75 million (€86m) to support its turnaround plan.

The group revealed plans yesterday evening to raise funds in order to strengthen its balance sheet.

The online retail business confirmed today that it has completed a share placing, with 17.9 million shares at 418.1p each to secure the cash injection.

It comes after Asos earlier this month revealed losses of more than £290 million (€334m) for the half-year to February, as it booked costs from restructuring efforts and lower sales as customer spending comes under pressure.

Asos said the fresh funding will be used for its turnaround plan, which will include shaking up the company’s approach to buying and merchandising, and giving the firm more financial headroom.

Asos told investors it has entered into a £200 million (€230m) senior term loan and a £75 million (€86m) revolving facility with specialist lender Bantry Bay Capital through to April 2026.

The new credit lines will replace its existing £350 million (€403m) facility which was due to expire next year.

AJ Bell investment director Russ Mould said: “The fast fashion online retailer hopes this can create a solid base for the company’s recovery.

“However, with the company paying high rates of interest on its newly agreed debt, much of the money raised from shareholders will almost immediately be going out the door on servicing its borrowings.

“The danger is Asos hasn’t raised enough this time round, either through choice or necessity, and it will have to dig out the begging bowl again before too long.”

Shares initially opened higher after the update but swung lower after analysts digested the update.