Made.com considers job cuts and potential company sale
Made.com is to conduct a strategic review of its business as it looks to reduce costs in the face of a decline in consumer spending.
The furniture retailer said the options available could include job cuts and even a sale of the business.
The news follows reports by the Financial Times that Made could cut up to 35% of its workforce.
Made said it is currently facing two major headwinds as a result of a deterioration the global economic conditions in the last 15 months. These include a decline in discretionary consumer spending and an increased need to sell goods at a discount which has impacted gross margin.
The challenging market conditions have also made it more difficult for the retailer to acquire new customers at financially attractive rates.
Since the beginning of 2022, Made has taken several steps to manage its cost base and cash flow but is now planning to implement additional cost reductions, including a strategic headcount review, within the next few weeks. It is also considering a potential sale of the business and has hired PwC to help with the process. While a number of discussions have taken place with interested parties, Made said it has not received any approaches,
Another option under consideration is a strategic investment in the company.
Nicola Thompson, chief executive of Made, said: “Made is not alone in being hit by problems in the supply chain and the cost-of-living squeeze but we are taking actions to ensure our continued success, supported by our strong brand, an excellent product range and a large and loyal customer basis in various markets.”
