Made.com on brink of collapse after failing to find a buyer

Made.com is on the brink of collapse after failing to find a buyer or the money to survive.

The troubled online furniture seller said it will “take appropriate steps” to protect lenders, suggesting it could fall into administration.

Made shares crashed 93.1 percent, or 6.4p, to 0.5p, warning it could suspend itself from the London Stock Exchange.

A restructuring expert told the Post there is “no doubt” that the company is being managed by advisors and is about to be administered.

The group entered the market in a bumper IPO last year, selling shares for 200 pence a pop and earning a valuation of £775 million.

But last month, it raised the ‘for sale’ sign after taking a heavy blow from the rising cost of living and supply chain chaos.

The company continued to sell shares at a discount — hitting profit margins — and struggled to attract customers.

Made said last week it was in talks with buyers about a rescue deal. The company gave bidders until the end of the month to submit ‘firm offers’, but warned potential buyers that it would need between £45 million and £70 million over the next year and a half to survive.

And yesterday, Made said all potential buyers withdrew because they couldn’t bid by the deadline. The company said it was “no longer” receiving any offers or financing proposals.

A source familiar with the company said the apparent collapse is the result of mismanagement since the company was listed.

Before floating, it operated on a “just-in-time” model, purchasing inventory only to fulfill orders.

But a large part of the proceeds from the IPO was invested in equities, with a surplus contributing to the demise.

Shore Capital retail analyst Clive Black said, “We’ve been saloon through last chance.

“It’s a rather unfortunate and unuplifting tale of a story of honesty that was all bland and empty.”