Online furniture retailer Made.com has gone into administration, the company confirmed on Wednesday.
Administrators at PricewaterhouseCoopers (PwC) said that 320 employees of the business had been made redundant so far, and 79 others who were working notice periods have been let go with immediate effect.
Made.com’s brand, website and intellectual property have been purchased by clothing and homeware retailer Next for a reported £3.4m.
In the first half of 2022 Made.com reported a pre-tax loss of £35.3m, compared with a loss of £10.1m a year earlier. The retailer stopped taking new orders in October and its shares were suspended from trading on the London Stock Exchange on 1 November 2022.
The shares are now expected to be cancelled, with any residual value distributed to shareholders and the company wound up.
As a result of the business entering administration, many customers who were awaiting a delivery will not receive their order.
“Close to 4,500 customer orders in the UK and Europe which are already with carriers are being delivered,” PwC said in a statement.
“However, a large proportion of customer orders are still at origin in the Far East at various stages of production.
“Due to the impact of the business entering administration, these items cannot be completed and shipped to customers.”
Customers whose products will not be delivered have been advised to check their credit and debit card purchase protection agreements.
“Over the past months we have fought tooth and nail to rapidly re-size the cost base, re-engineer the sourcing and stock model, and try every possible avenue to raise fresh financing and avoid this outcome,” said Nicola Thompson, chief executive of Made.com.
“Made is a much loved brand that was highly successful and well adapted, over many years, to a world of low inflation, stable consumer demand, reliable and cost efficient global supply chains and limited geo-political volatility.
“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. I hope that a reconfigured Made will prove to be sustainable and will continue to be loved by customers.”
