23rd Jun 2014 06:31
LONDON (Alliance News) - Online fashion retailer ASOS PLC Monday said it has re-started taking orders from its website, after South Yorkshire police started a criminal investigation into a fire at the company's main distribution centre in Barnsley.
In a statement, ASOS said it had GBP159 million worth of stock in total on May 31, about 70% of which was held at the Barnsley site. It said its initial estimate is that about 20% of the stock at Barnsley has been compromised by fire and sprinkler systems damage.
The fire started at its Barnsley warehouse in the early hours of Saturday morning, and ASOS halted orders. However, it said it had re-started taking orders at 0200 BST Monday morning.
"We have been advised by the South Yorkshire Police that after initial investigations, they are treating the incident as deliberate and have commenced a criminal enquiry. We are cooperating fully with this investigation," ASOS said in its statement.
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.
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. That failed to dent its earnings for that year.
The company said it is fully insured for the loss of stock and business interruption caused by the Barnsley fire.
By Rowena Harris-Doughty and Steve McGrath; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
ASOS