Asos has revealed it will close its local China operations and serve customers in the country from its main ASOS.com website.
The young fashion etailer says the move means Chinese customers will be able to access its full range of 80,000 items, as opposed to the 6,000 currently offered by its local operation.
Asos informed the market today that it estimates the cost of the closure to be around £10m, the majority of which will be non-cash, while the operating losses to closure in the current financial year would be £4m. Both amounts are pre-tax.
Chief executive Nick Beighton said it would continue to do business in China. “We are simply growing our customer base there in a more efficient, less costly manner,” he added.
Asos will post its results for the six months ending 29 February 2016 on 12 April.