Home » UK Employment news » Made.com collapses with the loss of all 573 jobs leaving thousands of orders in doubt

Made.com collapses with the loss of all 573 jobs leaving thousands of orders in doubt

By Nagasunder in UK Employment news, posted November 10, 2022

Struggling Made.com has gone into administration, resulting in the loss of all 573 jobs.

However, the brand, website and intellectual property have been snapped up by its rival Next.

Thousands of customer orders are now hanging in the balance as a result of the collapse.

There was no word on how many, if any, workers would be saved as a result of the takeover.

The takeover was confirmed when the operating subsidiary of the online furniture retailer had officially failed.

PricewaterhouseCoopers (PWC) administrators later revealed that 320 people had been made redundant so far, with 79 others who had already been working notice periods being immediately let go.

It is believed that the remainder were kept on for a short time to help with the transition.

PwC was starting the process of selling the company's other assets and repaying its creditors.

Administrators said: "Close to 4500 customer orders in the UK and Europe which are already with carriers are being delivered. However, a large proportion of customer orders are still at origin in the Far East at various stages of production. Due to the impact of the business entering administration, these items cannot be completed and shipped to customers.”

Those who are concerned about their orders are encouraged to contact administrators,

While financial experts advise anyone who has lost money to file a refund claim with their card or credit provider.

Just over a week after trading in Made.com shares was suspended, the parent company's stock market listing was expected to be cancelled.

Chief executive Nicola Thompson said: "I would like to sincerely apologise to everyone - customers, employees, supplier partners, shareholders and all other stakeholders - impacted as a result of the business going into administration. Over the past months, we have fought tooth and nail to rapidly re-size the cost base, re-engineer the sourcing and stock model, and try every possible avenue to raise fresh financing and avoid this outcome.

"Made is a much-loved brand that was highly successful and well adapted, over many years, to a world of low inflation, stable consumer demand, reliable and cost-efficient global supply chains and limited geopolitical volatility. That world vanished, the business could not survive in its current iteration, and we could not pivot fast enough. The brand will now continue under new owners. I hope that a reconfigured Made will prove to be sustainable and will continue to be loved by customers."

Brent Hoberman, a co-founder of Lastminute.com, and Ning Li, a Chinese entrepreneur, founded Made.com, which went public in London last year with a valuation of £775 million after a stellar sales performance during the COVID pandemic.

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By the time trading in shares was halted, its market value had plummeted to £2.1m.

The disastrous drop in its share price was also caused in part by a crash in technology-related stocks.

Made employed 700 people at its peak and had considered a cash call to raise £50 million from shareholders before deciding to sell.

Source: Sky News

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