Made.com to call in administrators with 700 staff left in lurch
Furniture retailer Made.com is to appoint administrators after failing to find a buyer and halting orders last week.
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.
The company floated in June 2021 with a valuation of £775 million, but has struggled in 2022 due to supply chain problems and the cost-of-living crisis’s impact on consumer spending. The company’s shares have lost 99.6% of their value since January, with its overall market value at £2 million.
The company currently employs around 700 people and is in the process of cutting its numbers by a third.
Commenting on the news, Alan Bradstock, director and senior insolvency practitioner at Company Debt, said: “On the one hand, Made’s recent collapse can be seen as a direct reflection on the cost-of-living crisis as British households seek to avoid major purchases on big ticket items. But in truth the brand was facing major headwinds prior to that due to supply chain issues, and the massive crash in tech stock prices.
“With the benefit of hindsight, Made should never have risked having no pre-arranged credit or overdraft facilities, or have tied up some much of its funds in inventory. It was also forced to shoulder a ballooning rise in freight costs which it couldn’t pass on to consumers.”