Made.com has suspended customer purchases after failing to find a buyer to rescue the beleaguered furniture business.
In a statement the company said: “In light of the fact that MDL [Made Design] is reliant on MADE for any further funding requirements and in order to preserve value for its creditors, the board of MDL has taken the decision to temporarily suspend new customer orders.
“This decision remains under review and a further announcement will be made as appropriate.”
In recent months, the company has warned it was considering cuts to staffing numbers and would need £70 million in funding to secure its future over the next 18 months.
Yesterday, Made said attempts to find a buyer had been unsuccessful. The company said: “Following further discussion, those parties have all now confirmed to the Company that they are 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.”
In May, the retailer warned supply chain issues would lead to a £5 million earning hit this year and said losses could be as much as £35 million for 2022. As recently as March, the company had predicted a profit.
Sales for 2022 are now set to fall by as much as 15% and the company no longer expects to meet its target of £1.2 billion sales by 2025.
Boss Nicola Thompson said: “There is no escaping the tough trading environment at the moment.”
Made put itself up for sale in the midst of severe downturn in the home furnishings market as consumers facing the cost of living crisis cut back on big ticket items.
The group, originally founded by former Lastminute boss Brent Hoberman and investor Ning Li signalled that it had hit the rocks last month as it sought out an eleventh hour cash injection from investors to shore up its balance sheet. Hoberman and Li have since left the business.
Shares in the business have tumbled 99% since the start of the year.
