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Made.com puts itself up for sale

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Online furnishings retailer Made.com has put itself up for sale after concluding that it could be unable to lift contemporary fairness to assist maintain a enterprise hit by a collapse in UK client confidence and provide chain disruption.

Having gone public final 12 months, Made.com warned on earnings in July and final month stated it could want to lift more money. The firm on Friday stated that it could have a look at a spread of choices, together with a sale and potential debt financing.

“The prevailing conditions are not supportive at the current time of raising sufficient equity from public market investors,” Made stated in an announcement.

It additionally stated that it was withdrawing its full-year monetary steering due to “the unexpected events of the past two weeks in the UK compounding the deterioration of trade”.

The shares have collapsed from an IPO value of 200p in June final 12 months to five.75p on Thursday, giving the group a market capitalisation of £23mn.

“While the group has had a number of strategic discussions with interested parties, the group is not in receipt of any approaches, nor in discussions with any potential offeror, at the time of this announcement,” Made stated.

The group stated {that a} fall in client spending had left it having to slash costs to shift stock. At the identical time, its freight prices have ballooned from £8.2mn in 2020 to £45.3mn final 12 months — prices it has not been in a position to cross on to customers.

The group additionally introduced sweeping value cuts, first reported by the Financial Times on Thursday.

“A process has commenced to implement additional cost reductions, including a strategic headcount review, within the next few weeks, whilst retaining appropriate skills and resources to be able to conduct the strategic review process effectively,” Made stated.

Source: www.ft.com

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