Made.com is on the verge of collapse after failing to find a buyer or the cash to stay afloat.
The troubled online furniture retailer said it will ‘take the appropriate steps’ to protect lenders, suggesting it could fall into administration.
Made shares crashed 93.1 per cent, or 6.4p, to 0.5p and warned it may suspend itself from the London Stock Exchange.
Troubled online furniture retailer Made.com said it will ‘take the appropriate steps’ to protect lenders, suggesting it could fall into administration
A restructuring expert told the Mail there is ‘no doubt’ the business is being guided by advisers and is on the verge of administration.
The group joined the market last year in a bumper IPO, selling shares for 200p a pop, earning a £775million valuation.
But it hoisted the ‘for sale’ sign last month after taking a battering from the rising cost of living and supply chain chaos.
The company was left selling stock at a discount – hitting profit margins – and struggling to attract customers.
Last week, Made said it was in talks with buyers about a rescue deal. The firm gave bidders until the end of the month to submit ‘firm offers’, but warned any potential buyers it would need between £45million and £70million over the next year and a half to survive.
And yesterday Made said all the potential buyers backed out as they would not be able to make offers by the necessary deadline. The company said it was ‘no longer’ in receipt of any bids or any funding proposals.
A source familiar with the company said the apparent collapse is a result of mismanagement since the business was listed.
Before floating, it operated on a ‘just in time’ model, only buying inventory to fill orders.
But much of the proceeds from the IPO were invested in stock – an excess of which contributed to its downfall.
Shore Capital retail analyst Clive Black said: ‘We have been through the last chance saloon.
‘It is a rather unfortunate and unedifying story of an equity story that was all puff and no substance.’
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