Made.com top brass proposes member voluntary liquidation

Made.com’s board has proposed formally winding up the company through a voluntary liquidation (MVL) of a member.

The embattled retailer Made said this would allow company-appointed liquidators to assess the remaining assets pending completion of administration.

The group plunged into administration in November after sales fell and customers pulled back on big purchases.

Next quickly picked up its brand, domain names and intellectual property for £3.4 million.

Made’s shares were suspended on Nov. 1, as the retailer said it expected the listing would be canceled and the company liquidated.

Made had conducted a strategic review, including a formal sales process, which was terminated on October 27 after it became clear that there was no reasonable prospect of an offer being made.

Speaking of the potential benefits of an MVL, Made said: “It allows liquidators appointed by the company to liquidate the company’s remaining assets pending the completion of MDL’s administration and allows the company to cover ongoing costs during this period. of a listed company (since participation in the members’ voluntary liquidation will result in the delisting of the company’s shares from the official list).’

Any residual value would then be distributed to shareholders and the company would be liquidated in due course, the retailer said.

Made issued a circular today with full details of the proposal and urged shareholders to vote in favor of the relevant resolutions.

The group said: ‘The circular contains an announcement of a general meeting of the company to be held on 16 January 2023 at 8:00 am at the offices of Herbert Smith Freehills LLP, Exchange House, Primrose Street, London, EC2A 2EG, United Kingdom (“General Assembly”) to consider resolutions to pass the Proposal.”

While an MVL is initiated by the company’s directors, it still requires 75 percent of shareholders notified of the AGM to approve the resolution to dissolve

Made.com reported a pre-tax loss of £35.3 million for the six months ended June 30, up from a loss of £10.1 million the year before.

Victoria Scholar, head of investment at Interactive Investor, said: ‘Made.com is one of the latest casualties of the high street’s decline as rising cost inflation and consumer slowdown hurt retail.

The furniture company benefited from a pandemic DIY boom, which propelled the company to the LSE last June.

Since then, however, it has faced headwinds due to the waning interior design boom following the pandemic, global supply chain issues negatively impacting delivery times, and the cost of living crisis that has weighed on household budgets. sets.’