Key points:
- Made.com has abandoned hopes of finding a buyer
- The company recently issued a cash flow warnings
- Made shares are down 99.5% in 2022
Made.com (LON: MADE) announced on Thursday that it has abandoned hopes of finding a rescue buyer and is planning its next steps to protect creditors and shareholders.
The online furniture retailer recently issued a cash flow warning and now has decided there is no reasonable prospect for an offer. As a result, the company terminated the sale process.
The firm stated it is no longer in receipt of any possible offers for the issued and to be issued share capital of the company.
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Additionally, Made has stopped accepting new orders for its design division and stated that the board would work to preserve value for investors and creditors as part of its ongoing strategic review.
Made benefitted significantly during the pandemic as people were made to stay home and could only shop online. In addition, the pandemic resulted in consumers splurging on home goods and furniture, and in 2020, the company's sales hit £315 million. However, the company now appears on the brink of collapse. The group traded at a value of £800 million when it was first listed in June 2021 but currently holds a market value of just £2 million.
The end of the pandemic has resulted in the company struggling as consumers transitioned back to in-store shopping and sky-high inflation weighed on spending. This has resulted in Made shares plummeting 99.5% so far this year.