ade.com has suspended customer purchases after failing to find a buyer to rescue the beleaguered furniture business.
The company said in a statement: “In light of the fact that the MDL [Made Design] 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 under review and further notification will be made as appropriate.”
The company has warned in recent months that it is considering job cuts and will need £70m to secure its future over the next 18 months.
Maid said yesterday that efforts to find a buyer had been unsuccessful. The company said: “After further discussion, all these parties have confirmed to the company that they are unable to meet the required schedule. As a result, these discussions have been terminated and the company is no longer receiving financing offers or potential offers.”
In May, the retailer warned that supply chain problems would cost it £5m of profits this year and said losses could be as high as £35m in 2022. Back in March, the company predicted a profit.
Sales are set to fall by 15% in 2022, and the company no longer expects to meet its target of £1.2 billion by 2025.
Boss Nicola Thompson said: “There is no escaping the tough trading environment at the moment.”
Made put itself up for sale amid a major downturn in the home furnishings market as consumers faced with a cost-of-living crisis cut back on big-box purchases.
The group, originally founded by former Lastminute boss Brent Hoberman and investor Ning Li, said it collapsed last month when it sought an eleventh-hour cash injection from investors to shore up its balance sheet. Hoberman and Lee have since left the business.
Since the beginning of the year, the company’s shares have fallen by 99%.
https://www.standard.co.uk/business/made-com-suspends-customer-orders-after-failing-to-find-a-buyer-b1035253.html
