Online furniture retailer Made.com has stopped taking orders from customers after rescue talks collapsed.
The British company said on Tuesday that talks with potential buyers had ended, warning that if financing could not be raised before the money ran out, it would take “appropriate steps to preserve value for creditors”.
The company said on Wednesday that its operating subsidiary Made Design Ltd (MDL) had “decided to temporarily suspend new customer orders”.
An update to the London Stock Exchange said: “In light of the fact that MDL is dependent on Made for any further funding requirements, and in order to preserve value for its lenders, the MDL board has decided to temporarily suspend new customer orders.
“This decision remains pending and further announcement will be made as necessary.
“Made’s board will continue to seek to preserve value for its creditors and shareholders in light of this decision.”
Made’s website was down Wednesday afternoon and said: “We’re making important updates to improve your shopping experience.”
Listed on the London Stock Exchange last June at a value of £775m, it has been hit by supply chain problems and a slump in consumer spending.
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Earlier this year, the company said it was considering job cuts and would need £70m to secure its future over the next 18 months.
On Tuesday, the listed company confirmed that talks aimed at finding a buyer by the end of the month had ended.
“After further discussion, all of these parties have confirmed to the company that they are unable to meet the required schedule,” the company said.
“As a result, these discussions have been terminated and the company is no longer receiving financing offers or potential offers in respect of the company’s issued and outstanding share capital.”
It added: “If further financing cannot be raised, or a firm offer for the company is not received before the company’s cash reserves are fully exhausted, the board of directors will take appropriate action to preserve value for creditors.
“There can be no assurance that the terms of any offer or investment received will be suitable.”
https://news.sky.com/story/furniture-retailer-madecom-stops-taking-customer-orders-after-rescue-talks-fail-12730805
