Made.com reveals several offers have been made for the company

Made.com has confirmed that a number of non-binding indicative proposals have been made for the takeover of the group.

The struggling furniture retailer said a ‘select number’ of potential suitors had been invited to make ‘firm offers’ by the end of this month, having originally put itself up for sale on 23 September.

Made, which sells bedding, sofas and dining tables among its range, was put on the market after bosses announced the group would be unable to obtain sufficient equity from shareholders in a capital raise.

Possible deal: The struggling furniture retailer said a ‘select number’ of potential suitors had been invited to make ‘firm offers’ by the end of this month

They also began a strategic review to assess various alternative measures, such as a merger with another company, debt financing, or a strategic investment from a business partner.

Made said the propositions on the table ‘provide a range of different transaction structures’ but warned there could be no certainty of a concrete bid and that talks could be changed or stopped at any time.

It added: ‘Any firm offer would require interim financing to be put in place at the time that firm offers are expected, which the parties involved in the process are aware of.’

Following the announcement, Made shares surged by over a quarter to 8.9p, though this remains way below the 200p-per-share price at which the company listed in June last year.

The online retailer debuted on the London Stock Exchange after a boom in trade during the first half of the Covid-19 pandemic when Britons were forced to spend extra time indoors.

Homeware stores were also subject to tough lockdown restrictions, including temporary closures during the first national lockdown, while a stamp duty holiday spurred a homebuying and renovation boom.

Good times: Made became a listed firm in June 2021 following a boom in trade during the first half of the Covid-19 pandemic when Britons were forced to spend extra time indoors

But since going public, the London-based business has contended with supply chain problems that have meant some customers waited months for their deliveries or cancelled them outright.

At the same time, the absence of Covid-19 curbs has brought consumers back to furniture outlets and freight costs have skyrocketed, more than quintupling to £45.3million in the second half of 2021.

Problems have been worsened this year by soaring energy and commodity prices putting a squeeze on consumer incomes and causing widespread economic uncertainty across Europe.

Made has issued three profit warnings in 2022, with the latest predicting full-year losses will shoot up to between £50million and £70million, compared to a previous forecast of £15milion to £35million.

The group has sought to slash costs through staff layoffs, cutting marketing spending, and reducing the volume of forward buying for its inventory, but this has not been enough to significantly turn its finances around. 

Its market capitalisation has plummeted from £775million when it listed to just £34.9million on Monday. 

Other furniture sellers have experienced similar financial and trading troubles, notably Eve Sleep, which has called in the administrators this morning.

The mattress company has taken the measure after failing to find a new owner or gain fresh funding, even though it had received interest from several parties.

Cheryl Calverley, its chief executive, said: ‘Despite monumental efforts to restructure the business and reshape the cost base, the scale of Eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months, and allow it to continue as an independent business.’

This post first appeared on Dailymail.co.uk