Made.com, an online furniture and home accessories retailer based in the U.K., has entered administration according to reports.
In October, Made.com ceased taking new orders and no interested parties were able to meet the necessary timetable for closing a deal, despite the company revealing that it was in talks with potential buyers. Next, a multinational retailer with physical and online stores in the U.K., has acquired the intellectual property of Made.com.
According to reports, Next paid over 3 million dollars in the fire sale.
"We are deeply disappointed that we have reached this point and how it will affect all our stakeholders, including employees, customers, suppliers and shareholders." MDL going into administration will cause a lot of frustration for everyone, and we are very sorry for that.
Made.com was founded out of London in 2010 and raised $137 million from investors in order to improve the entire furniture design, manufacturing, and sales processes through close partnerships with partner companies. The company went public on the London Stock Exchange in 2021 at a valuation of around £775 million, though its share price has been in constant decline sinceIPO day last June, and with the company reporting growing losses and job cut plans throughout 2022, the writing has been on the wall.
The co-founder and former CEO of Made.com posted an open letter stating that he tried to buy the company back with his own money but was turned down.
The proposal wasn't accepted. It would be better for the company to be broken up and sold in pieces to make more money. I don't understand it. I wanted you to know that I did everything I could.
Made.com recently stated that it wouldn't be processing any requests for refunds for customers with pending orders, and it's not clear if this will change in the future, as the administrators are concerned with selling all of Made. The board expects any residual value left after the administration process to be given to the shareholders.
It is not clear if Next will retain any of the 500 jobs that are currently on the line with Made.com entering administration.
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