Made.com to file for insolvency as online retailer collapses
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Shares of Made.com have been suspended from trading on the London Stock Exchange.
PHOTO: MADE.COM
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LONDON - Made.com Group plans to file for insolvency after the British online furniture store failed to find a rescue buyer and ran out of cash.
The company said on Tuesday that it intends to appoint PwC as administrator, putting potentially as many as 500 jobs at risk. Shares of Made.com have been suspended from trading on the London Stock Exchange.
News of Made.com’s collapse marks a steep decline for a company which listed only last year with a valuation of £775 million (S$1.26 billion) and was hailed as a millennial favourite.
The company’s failure was largely driven by soaring freight costs and supply chain difficulties.
Soon after Made.com’s initial public offering, the business said it was struggling to get stock due to longer shipping times and manufacturing in Vietnam being halted.
Made.com issued three profit warnings this year as customers grew fed up over long waiting times and then demand evaporated with rampant inflation pushing up costs for fuel, energy and food.
Consumer demand for online shopping also fell after the pandemic eased and people returned to shops and offices and spent less time buying homeware on the Internet.
Several management departures have compounded the problems at Made.com, with the shares slumping more than 99 per cent this year.
Mr Brent Hoberman, the creator of travel website Lastminute.com, co-founded Made.com in 2010 in an attempt to offer stylish furniture at lower prices by selling directly to consumers and eliminating traditional retailers.
The company said PwC will handle any potential sale of Made.com’s trade, assets or brands, although there can be no certainty of any deal. BLOOMBERG
