Asos Closes China Business Under Weight of Alibaba Competition
- Company cuts its losses on local operations after three years
- Asos will focus investment on the U.K., Europe and the U.S.
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Asos Plc has pulled the plug on its Chinese venture after failing to lure customers away from Alibaba Group Holding Ltd.
The British online fashion retailer will close its Chinese distribution center, Shanghai office and local website after failing to turn a profit since beginning operations in the country in 2013, the company said in a statement Thursday. The retreat will involve a charge of as much as 10 million pounds ($14 million).