23rd Jun 2014 05:31
LONDON (Alliance News) - Online fashion retailer ASOS PLC was forced to halt orders and close down its website over the weekend, after a fire broke out at its distribution centre in Barnsley.
In a statement on its website, ASOS said the fire started at its Barnsley warehouse in the early hours of Saturday morning. South Yorkshire Police said they suspect arson, and are treating the incident as suspicious.
"The fire involved four floors of the warehouse and the blaze was contained in the area of origin by firefighters," South Yorkshire Police said in a statement.
Around 500 workers were safely evacuated.
"Thankfully no one was hurt and we expect to be back to normal for you in the next day or so. So please hold on to your orders, we will be back with you soon," said ASOS.
News of the fire could cause ASOS's shares to fall at the market open Monday, as it comes just weeks after the online retailer saw more than GBP1 billion wiped off its market value when it said it was lowering its profit guidance for the current financial year and next year, due to heavy discounting, and sterling strength which it said took a big chunk out of its international business.
Finance Director Nick Beighton told journalists earlier this month the company's full-year profits will fall to around GBP45 million this year, compared to its previous profit guidance given in March of around GBP63 million to GBP65 million. ASOS also lowered its profit expectations for the next financial year, saying it was "resetting its expectations".
It's also not the first time the business has been hit by a fire, as its warehouse at Hemel Hempstead was damaged by an explosion in December 2005, as a result of an explosion at the Buncefield fuel depot.
At the time, ASOS issued a statement saying that profits for the year would not be affected by the damage caused.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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