Jan 15 (Reuters) - Britain's ASOS Plc flagged a

one-time impairment charge exceeding $200 million in fiscal 2025

due to the "mothballing" of its Atlanta distribution centre on

Wednesday, as the online fashion retailer navigates a tough

business environment.

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.

This effort by the retailer, however, has coincided with the

growing prominence of budget-friendly fast-fashion brands such

as Shein and the Chinese online retailer Temu.

The decision to phase out the Atlanta facility comes after

ASOS completes a multi-year warehouse automation project.

U.S. customers will be served from the retailer's automated

UK fulfilment centre from the second half of 2025 and through a

smaller local site, ASOS said.

Due to the shift, the retailer expects to take a one-time

hit of about 190 million pounds ($231.91 million) on its

reported profit in fiscal 2025, and then save between 10 million

pounds and 20 million pounds annually in core earnings from

financial year 2026.

ASOS intends to market the Atlanta site - seven employees

will be offered new roles if possible, and many third-party

logistics workers will be given opportunities at nearby

locations, the company said.

The firm, which opened a local U.S. office in 2024, said it

will continue to grow and build its local presence.

($1 = 0.8193 pounds)