Talks to secure a rescue sale of online furniture company Made.com have collapsed. The firm has indicated it could be forced towards insolvency if another potential buyer does not appear or new funding cannot be found.
Two years ago Made floated on the stock market with a £775 million valuation. But today (Tuesday, October 25) its shares tumbled 93% to 0.5p per share, bringing its value down below £2 million.
Last week, Made.com said it had received a number of takeover proposals. The company has been hit by a downturn in consumer spending as well as supply chain disruption, and previously warned it needed £70 million to secure its future over the next 18 months.
The firm said potentially interested parties had all confirmed they were "unable to meet the necessary timetable". “As a result, those discussions have been terminated and the company is no longer in receipt of funding proposals or possible offers for the issued and to be issued share capital of the company,” it added.
Made’s board added that the business is considering its current position and will make a further announcement in due course. It said: “If further funding cannot be raised, or a firm offer for the company is not received before the company’s cash reserves are fully depleted, the board will take the appropriate steps to preserve value for creditors.”
Made has requested that its shares be suspended from London Stock Exchange. The board said: “There can be no certainty that the terms of any offer or investment received will be suitable.”
