We knew it was happening, but UK-based online furniture and home accessories retailer Made.com has officially gone into administration, confirming earlier reports that PresswaterhouseCoopers was appointed administrator yesterday.
Although Made.com stated that it was in discussions with potential buyers, nothing was found in time and the company stopped taking new orders at the end of October, none of the interested parties were able to “meet the necessary timeline” to close the deal. However, news broke today that the Made.com domain names, intellectual property and brand Next has been acquired by a multinational retailer with physical and online stores in Britain.
“After an extensive process to secure the future of the business, we are deeply saddened to reach this stage and how it affects our stakeholders, including our employees, customers, suppliers and shareholders,” Made.com Chairman Susan Ginn said in a statement today. “We appreciate and sincerely regret the disappointment MDL (Made.com) has caused to everyone going into administration.”
The path of destruction
In the year Founded in London in 2010, Made.com has emerged as one of the UK’s most promising startups, raising $137 million in investor funding and creating close partnerships with partner companies to streamline the entire furniture design, manufacturing and sales process. The company It went public on the London Stock Exchange in 2021 at a valuation of £775m, although the share price has been in perpetual decline since last June, and the writing remains on the wall, with the company reporting growing losses and plans to cut jobs in 2022.
Reports indicate that Next has paid £3.4 million to acquire the Made.com brand and IP.
In the year Cofounder and former CEO Ning Li, who left Made.com in 2017, posted an open letter saying he made three bids to buy back the company with his own money and turn things around, but was ultimately rejected.
“Unfortunately, my proposal was not accepted,” Lee wrote. “In any case, it would be better if he broke up the company and sold it to make a little more money. It doesn’t make sense to me. But I wanted you to know that I really tried.”
It is worth noting that Made.com has recently announced that customers will not be handling refund requests for pending orders, and it is currently unclear whether this will change in the future – the administrators are currently concerned. Selling all of Made.com’s remaining assets and paying creditors. And as the board announced today, it is expected that the “residual value” remaining after the administration process will be distributed to the company’s shareholders.
It’s also unclear what the future plans are for the Made.com brand and whether it plans to keep any of the 500 jobs currently online with Made.com’s entry management.
