ASOS has a longstanding relationship with Star Knitwear, and levels of business between ASOS and Star Knitwear have grown consistently year-on-year since 2022, driven by expansion across different ASOS departments. ASOS has not reduced its orders with Star Knitwear and has continued to support the factory with new business...

During a regular social audit of the factory in July 2024, Star Knitwear transparently shared information with ASOS regarding its financial situation, including steps it was taking to improve finances within the company. It confirmed that, having explored every alternative option — including overtime reduction, a recruitment freeze, redeployment of headcount, and training and reskilling — the business had no choice but to make redundancies as this was the only way to deliver the required financial outcome.

ASOS was informed that, as a result, a total of 433 employees (236 local and 197 expatriate workers) were made redundant, effective from 28 February 2025. It was advised that the factory had engaged with relevant stakeholders during this process, including trade unions, the workers' council, and relevant authorities. Selection criteria for the redundancies were based on skill sets, skills and experience required for ongoing operations, performance and attendance records, quality control records, and performance-based efficiency. The factory management shared that it had also been in discussions with the Government to support those affected by the redundancies in finding other work.

Since the initial audit in July 2024 and in line with ASOS' approach to due diligence, the ASOS Human Rights team has met with and visited Star Knitwear regularly to discuss the financial situation and its progress against its turnaround plan. This has included the status of severance payments for the affected employees. ASOS will be conducting a follow-up audit to verify that severance payments have been made to affected employees