Online furniture retailer Made.com has gone into administration, leading to the loss of up to 500 jobs. The firm, which enjoyed soaring sales during Covid lockdowns, hit problems as households cut back and has appointed PWC as the administrator.
The fashion and furniture retailer Next is buying the Made.com brand name, website and intellectual property.
Thousands of customers face uncertainty over whether they will receive a refund for outstanding orders with Made.com.
Susanne Given, chair of Made, 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.”
She added: “We appreciate and deeply regret the frustration that [Made.com] going into administration will have caused for everyone.”
The chief executive of Made, Nicola Thompson, apologised to everyone affected by the business going into administration, adding that the firm had “fought tooth and nail” to avoid this outcome.
She described Made.com as a “much-loved brand” that had thrived in a world of lower prices, stable demand from its customers and reliable supply chains.
But she continued: “That world vanished, the business could not survive in its current iteration, and we could not pivot fast enough. The brand will now continue under new owners.”
It is a dramatic change in fortunes for the brand, which boomed during the pandemic-related lockdowns as people bought more furniture and other products online.
The retailer, which sourced furniture directly from designers and manufacturers, gained a loyal base of mostly younger customers. Last year, it was valued at £775m after floating on the London Stock Exchange.
But more recently the company hit problems, as households cut back on big-ticket purchases. Global supply chain issues have also left customers waiting months for deliveries.
Made.com had already halted new orders recently and said it is currently not offering refunds or accepting returns from customers, although it is still intending to fulfil previous orders.
Made.com announced its intention to appoint administrators last week. It had originally hoped to find a buyer for the whole business.
However, the company’s co-founder and former boss said his offer to buy the furniture business was rejected.
Ning Li said he had offered to buy Made with his own cash, saving about 100 jobs, but this “wasn’t accepted”.
Source: bbc.com
