We knew this was happening, but UK-based online furniture and home accessories retailer Made.com has officially entered administration, confirming previous reports yesterday with the appointment of PricewaterhouseCoopers as administrators .
While Made.com disclosed that it was in discussions with potential buyers, nothing happened in time and the company stopped taking new orders at the end of October, with any interested parties “needed time” to close the deal. Was not able to meet the schedule”. However, news broke today that the domain name, intellectual property and brand of Made.com have been acquired by Next, a multinational retailer that essentially has physical and online stores in the UK.
Reports suggest that NeXT paid £3.4 million ($3.8 million) in Firecell.
“After running 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 of our stakeholders, including employees, customers, suppliers and shareholders,” Susan Given, president of Made.com. In a statement issued today. “We appreciate the disappointment and deeply regret that going into the MDL (Med.com) administration will be a cause for all.”
road to Perdition
Founded in London in 2010, Made.com has emerged as one of the UK’s most promising startups, raising $137 million in investor money for a business that has developed a whole slew of furniture design through close partnerships with partner companies. Optimized manufacturing and sales processes. , The company went public on the London Stock Exchange in 2021 at a valuation of around £775 million, although its share price has been in a steady decline since the day of last June’s IPO, and the company reports mounting losses and plans to cut jobs in 2022. With, written on the wall.
Cofounder and former CEO Ning Li, who left Made.com in 2017, posted an open letter saying he had made three bids to buy the company back from its cash and try to turn things around, But was eventually rejected.
“Unfortunately, my offer was not accepted,” Lee wrote. “Obviously, it would be better to break up the company and sell it in pieces to generate a little more cash. That doesn’t make sense to me. But I wanted you to know that I really tried.”
It’s worth noting that Made.com recently stated that it would not process any refund requests for customers with pending orders, and it’s not clear at this time whether this will change in the future — for the time being, Administrators are concerned by selling all of Made.com’s remaining assets and paying off its creditors. And the board said today that it eventually expects “any residual value” left over after the administration process to be distributed to the company’s shareholders.
It’s also unclear what Next’s plans are for the Med.com brand, and whether it plans to retain any of the 500 jobs that enter Med.com’s administration.