UK's ASOS takes steps to restructure business

(Reuters) - Britain's ASOS on Wednesday laid out a plan to restructure its business by merging its commercial and customer functions as the retailer navigates a tough business environment.

To boost growth, the online fashion retailer has launched a dedicated cross-functional team to ensure its brands, Topshop and Topman, could operate standalone, it said in a statement.

ASOS, founded in 2000, said it has "significantly" reduced its stock levels, improved its product and refinanced debt.

Over the last couple of years, ASOS has been working to transform its business after losing popularity among its target audience of young customers and dealing with an inventory surplus.

In January, the company said it would take a one-time impairment charge exceeding $200 million in fiscal 2025 due to the "mothballing" of its Atlanta distribution centre.

ASOS also said it would consolidate its people experience, and corporate affairs and strategy team to streamline decision-making and enhance communication.

The retailer, which currently has 20 million active customers in more than 200 markets, said the changes were expected to take affect from April.

(Reporting by Radhika Anilkumar and Chandini Monnappa in Bengaluru; Editing by Shilpi Majumdar)