Made.com to go into administration this week. Update: IP bought by Next Plc
Mon, 07 Nov 2022 | ADMINISTRATION
Online furniture retailer Made.com is expected to go into administration this week.
The company has failed to find a buyer since announcing in September that it was looking for an investor to keep the business trading.
Set up in 2011, Made.com had ambitions to be the "new Ikea" offering affordable yet "high-end" furniture online. While the company was valued at £775m when it was floated on the London Stock Exchange last year, it recently suffered due to the cost of living crisis as households have cut down on making large purchases.
The firm's co-founder Brent Hoberman said on Linkedin last week: Made got caught with massive inventory at just the wrong time.
“The model had previously always been about minimal stock and wastage. What was once a differentiated model morphed into being more similar to other retailers.
“There are many questions about how the capital raised in the IPO was spent, who was worrying about the potential risks, and how the company had drifted from its initial business model.”
According to media reports, global supply chain issues have left customers waiting months for deliveries and now around 500 staff, most of whom are in the UK, are expected to lose their jobs and thousands more customers don’t know whether they will receive a refund for outstanding orders. The company stopped taking new orders at the end of October and last week its shares were suspended after it warned it was running out of funds.
Made.com announced that it was intending to appoint administrators last week and the formal legal process is expected to take place in the coming days. Administrators from PwC are expected to oversee a sale of intellectual property associated with the firm once it formally enters administration.
Update: 10th November 2022 - The UK-based international fashion and furniture retailer Next Plc has done a deal with administrators to purchase the Made.com brand, including the domain name and other intellectual property.
Also read:
Buying intellectual property out of administration.
IP as an exit asset
View the latest distressed UK businesses here.
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