Made.com to call in administrators as furniture firm’s 700 staff left in lurch
Made.com has announced the appointment of administrators after cash-strapped consumers have pulled back on big ticket spending.
The London-listed furniture firm said on Tuesday that it’s board has resolved to file notice of an intention to appoint administrators at PricewaterhouseCoopers (PWC).
The company had been seeking out rescue cash but interested suitors were unable to meet a necessary timetable to save the business.
It had been looking to shore up aggregate funding of around £45-70m over the next 18 months as a stand-alone public company.
The notice of intention means Made has some headroom to explore all options, which could include a full or partial sale.
Made.com said it had previously received proposals from suitors to ascertain “certain of or substantially all” of its trades, assets, and brands.
Bosses will be looking at all options for the firm, although it may collapse into administration within the next two weeks.
Made.com’s shares were suspended from trading on the London Stock Exchange’s Main Market on Tuesday morning.
Around 670 people were employed by the firm last year.
The business only made its debut on the London Stock Exchange in January, with a valuation of £775m. Its share price has taken a hammering to the tune of 99 per cent over the past year to date.
Last week, the platform suspended all new customer orders, leaving shoppers in the lurch.
Earlier this month, the firm shared widening losses after consumers slowdown on buying homeware items amid the cost of living crunch. Made posted a loss before tax of £35.3m for the six months to 30 June, versus £10.1m a year prior.
“The first half of the year was a challenging time for the global economy and particularly for the retail sector,” according to chief executive officer, Nicola Thompson.