ASOS shares suspended after Hemel blast damages warehouse

Shares in Asos, the virtual fashion chain, have been suspended after the company's warehouse was damaged by the explosions at the Buncefield fuel depot.

The online retailer was forced to ask the stock exchange to halt trading in its shares because it could not get near its warehouse to assess the scale of damage sustained. Its shares, which have been treading water for most of the year, were suspended at 77.5p.

The Hertfordshire blasts could not have come at a worse time for the retailer, which has thrown everything into its preparations for this Christmas. The company has pumped £600,000 of capital expenditure, plunging the business into an interim loss, into opening the new warehouse in Hemel Hempstead.

It was hopeful the new site would allow it to cope with the demand that has fuelled a 80 per cent year-on-year rise in sales. The pitfalls of operating across four temporary depots last year meant Christmas 2004 failed to live up to expectations.

Rhys Williams, an analyst at Seymour Pierce, said: "It remains unbelievably bad luck that for the second year in a row its distribution is impacted at its busiest time."

Nick Robertson, the chief executive, said that although the company was fully insured he was worried about the loss of goodwill with his customers. Asos spent yesterday contacting between 10,000 and 15,000 customers who were waiting for the latest fashions to drop through their door. All will be compensated but Mr Robertson knows he will have to wait to find out if they will order from Asos again.

Asos is among a clutch of firms that have been blocked from getting anywhere near the Mayland Avenue industrial estate while firefighters get the flames under control. DSG International, the parent company of Dixons, has been forced to abandon its head office. Scottish & Newcastle said the blasts caused "significant damage" to the main distribution centre for its wine and spirits wholesaler Waverly. It estimated it had lost at least £10m worth of assets.

Lloyd's of London has played down the prospect of claims arising from the explosion having a "significant" impact on the insurance market. But the Association of British Insurers moved to reassure companies that they would be covered for the effects of the fire by all "standard business policies".