Made.com has moved closer to insolvency after talks to secure a rescue deal for the struggling company fell through.

The retailer says it will be forced to “take appropriate steps to preserve value for creditors” as its funds continue to fall.

Following an unsuccessful fundraising round, the furniture retailer laid off more than a third of its workforce and began the search for a buyer last month.

READ MORE: MADE.COM TO AXE MORE THAN A THIRD OF ITS WORKFORCE AS IT CONSIDERS COMPANY SALE

It had set a deadline of the end of October for offers to buy the company.

The retailer had entered talks with “a select number of parties” to work towards firm offers but all have now confirmed they are unable to meet the necessary timetable.

It said: “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.

“Whilst at this stage the FSP is ongoing, there can be no certainty that an offer will be made, nor as to what the terms of any offer may be.”

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Made.com stated that it is “considering the position” and that an announcement will be made in the near future.

It added: “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.

“There can be no certainty that the terms of any offer or investment received will be suitable.”

It warned that it “may determine” to suspend its shares on the stock exchange and would make a further announcement in due course.

Source: Retail Gazette

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