Made.com goes into administration with up to 600 jobs lost as high street giant Next buys the retailer’s brand name and website
- Made.com’s operating subsidiary, MDL, appointed administrators on Tuesday
- It has not been announced how many, if any, of 600 jobs will be saved by Next
- Rapid fall of company comes two years after its £775m debut on stock exchange
Next has bought the brand of furniture seller Made.com after the business filed for administration on Tuesday.
Made, which employs around 600 people, said it will sell its brand, websites and intellectual property to the clothes retailer.
It is a sharp downturn for the company, which launched on the London Stock Exchange less than two years ago with a £775 million price tag and promises of accelerated growth and leading the online furniture market.
On Tuesday, Made’s operating subsidiary, MDL, was forced to appoint administrators from specialist firm PwC who immediately tied up the deal with Next.
They did not say whether any jobs will be saved as part of the deal.
Made chairwoman Susanne Given said: ‘Having run an extensive process to secure the future of the business, we are deeply disappointed that we have reached this point and how it will affect all our stakeholders, including employees, customers, suppliers and shareholders.
‘We appreciate and deeply regret the frustration that MDL going into administration will have caused for everyone.’
Made, which employs around 600 people, said it will sell its brand, websites and intellectual property to the clothes retailer (Pictured: Made.com London headquarters)
Made.com had also already halted new orders and said it is currently not offering refunds or accepting returns from customers, although it is still intending to fulfil previous orders
The writing had been on the wall for several days after Made last month abandoned hopes of finding a buyer to save it and inject the cash it needed to stay afloat.
The troubled company filed a notice to appoint administrators last week after being hit by soaring costs and slowing customer demand.
Made.com had also already halted new orders and said it is currently not offering refunds or accepting returns from customers, although it is still intending to fulfil previous orders.
The retailer has offices in London, Paris, Berlin, Amsterdam, China and Vietnam.
It is understood the company had garnered interest from a number of parties to purchase parts of the business since tipping into insolvency before tying up the deal with Next.
The firm’s shares had already been suspended.
This was the message on Made.com for customers who tried to browse on the firm’s website when it stopped taking orders last month
Ms Given said: ‘I want to sincerely thank all our employees, customers, suppliers and partners for your support throughout the past 12 years, and especially during this difficult time where we have tried so hard to find a workable solution for the company and all its stakeholders.’
It comes after signs of real trouble emerged in July, when Made.com slashed its sales and earnings guidance for 2022, stating it did not expect an improvement in demand for big-ticket items any time soon.
Wages have failed to keep pace with inflation, which hit a more than 40-year high of 10.1 per cent in September.
Made.com said its gross sales fell 19 per cent in the first half of 2022 year-on-year.
Reflecting recent non-recurring costs, volatile trading and an expectation of no near-term improvement in discretionary big-ticket demand nor in new customer acquisition, the group forecast a 15 per cent to 30 per cent fall in full-year gross sales.
It also forecast a core loss of £50million to £70million, against a previous expectation of a loss of £15million to £35 million.