Struggling online retailer Asos has attracted the attention of renowned short-seller Matthew Earl – aka the Dark Destroyer – the founder of London-based hedge fund ShadowFall, who believes that the company will need to raise more cash from shareholders as it struggles to adapt to post-pandemic life, according to a report by The Sunday Times.

Earl's ShadowFall has reportedly built a short position in Asos worth about £4 million.

The report cites data from S&P Global Market Intelligence as revealing that Asos is currently the second most shorted stock in the FTSE 250, with 10.98 per cent of its outstanding shares on loan, with a number of hedge fund majors, including Citadel Advisors and Marshall Wace, also holding substantial short positions in the company.

The cost of living crisis and soaring costs saw Asos record a £31.9 million loss last year, while the company's shares have fallen by over 44 per cent in the last 12 months, bringing its market capitalisation to around £780 million.