Asda's bonds and loans have come under pressure after investors lost confidence in the supermarket's turnaround plan following its worst festive trading of any UK supermarket.
The traded debt of the Britain's third-largest supermarket has fallen in price as shoppers deserted Asda during the festive season, adding to the challenges already facing chairman Allan Leighton.
A €1.3billion term loan issued in 2024 is now trading at a record low of 88 cents on the euro, down from 96 cents in November, The Times reports.
Another €700million of Asda’s bonds due to mature in 2031 have slipped to 94 cents on the euro.
Asda's market share slipped from 12.3% to 11.2% in the four weeks to December 27, compared to 14.8% in early 2021.
According to The Telegraph, the supermarket chain is preparing to axe more than 150 staff following its poor performance.
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The UK's flagship share index, the FTSE 100, was up 44 points at 10,225 shortly after opening this morning.
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Companies reporting
- Ninety One - Q3 Assets Under Management