to appoint administrators

Furniture retailer is to appoint administrators after failing to find a buyer and halting orders last week.

The company floated in June 2021 with a valuation of £775 million, but has struggled in 2022 due to supply chain problems and the cost-of-living crisis’s impact on consumer spending. The company’s shares have lost 99.6% of their value since January, with its overall market value at £2 million.

Trading in shares was suspended on Tuesday after the company’s board said it would appoint administrators from PricewaterhouseCoopers to handle any sale of its brand or assets should it fail to secure a parcel sale or full sale in the next 10 days.

The company currently employs around 700 people and is in the process of cutting its numbers by a third.

Commenting on the news, Alan Bradstock, director and senior insolvency practitioner at Company Debt, said: "On the one hand, Made's recent collapse can be seen as a direct reflection on the cost-of-living crisis as British households seek to avoid major purchases on big ticket items. But in truth the brand was facing major headwinds prior to that due to supply chain issues, and the massive crash in tech stock prices.

“With the benefit of hindsight, Made should never have risked having no pre-arranged credit or overdraft facilities, or have tied up some much of its funds in inventory. It was also forced to shoulder a ballooning rise in freight costs which it couldn’t pass on to consumers."

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