Made.com stops taking furniture orders as it teeters on brink of collapse

Made.com has stopped taking new furniture orders and shut down its website after talks between the ailing furniture retailer and potential bidders collapsed.

The company, which only listed on the London Stock Exchange in June 2021, said it has “made the decision to temporarily suspend new customer orders” as there are signs it is hiring PwC as administrators after a turbulent year. Its website went down on Wednesday morning.

In an update to the market, the online furniture retailer said it took the step to “preserve value for its creditors” after confirming on Tuesday that it had no longer received any funding proposals or potential offers for a potential takeover . It said the decision was still being reviewed.

In its warning yesterday, Made.com indicated that if it were unable to raise further funds or receive a firm offer before its cash reserves were fully depleted, it would have to take “appropriate steps” to try and secure the to get value.

“There can be no assurance that the terms of any offer received or investment received will be reasonable.”

Made.com could suspend its shares this week amid uncertainty surrounding the business. Shares fell 90 per cent to below 1p after the announcement, valuing the company at just £30m.

The retailer, which sells velvet sofas, armchairs, copper-framed beds and rose gold lamps, debuted on the London Stock Exchange last year at a valuation of £775million after originally targeting a £1billion price tag.

In the short time since listing, Made.com has issued three profit warnings and lost both its CEO and CFO.

Analysts have said the company should have sourced more of its furniture locally to avoid supply turmoil.

The online furniture retailer has attributed its recent woes to two major headwinds: customers spending less amid the cost-of-living crisis and “lower reliability and increased costs” within supply chains.

The company was founded in 2011 by Ning Li, Chloe Macintosh and Brent Hoberman, the serial entrepreneur behind Lastminute.com.

Made.com is one of several retailers that have struggled since going public last year. The greeting card seller Moonpig and Dr. Martens have both seen their share prices fall 70 percent and 50 percent, respectively, since going public in 2021.

https://www.telegraph.co.uk/business/2022/10/25/madecom-brink-collapse-no-offers-emerge-potential-buyout/ Made.com stops taking furniture orders as it teeters on brink of collapse

Russell Falcon

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