Online furniture retailer Made.com has launched a ‘headcount review’ (Made.com/PA)
Embattled furniture retailer Made.com has edged another step closer to the brink as it confirmed it had abandoned a search for a rescue buyer after admitting that “there is no reasonable prospect” an offer will be forthcoming.
Yesterday the business said it had suspended taking new orders from customers. Made later confirmed it was no longer able to accept returns, offer refunds or cancel orders of existing customers.
The past few months have marked a dramatic decline for Made which was floated on the London stock exchange little over a year ago at a valuation of £775 million. Its shares have since fallen 99% to give it a market cap of just £2 million.
The firm had been eyeing rapid expansion, having set a target to deliver sales of £1.2 billion by 2025. But in May, the firm warned that target was unlikely to be achieved and it was instead looking at a loss of £35 million in 2022 after being hit by falling consumer demand and supply chain disruption. As recently as March, the company had predicted a profit.
The Shoreditch-based business, originally founded by former Lastminute boss Brent Hoberman and investor Ning Li signalled that it had hit the rocks last month when it said it would need an emergency cash injection of £70 million to stay afloat. Hoberman and Li have since left the business. Cutbacks at the business have also been reported to include 200 layoffs.
Boss Nicola Thompson said: “There is no escaping the tough trading environment at the moment.”
