Home » UK Business News » Made.com defaults on £12 million of deposits placed by customers

Made.com defaults on £12 million of deposits placed by customers

By Nagasunder in UK Business News, posted December 29, 2022

Over 30,000 Made.com shoppers are together owed almost £12 million which they will not get back, according to the newest statement by administrators to the bankrupt furniture seller.

When the London-listed store entered administration in November as a result of consumers delaying large purchases due to rising inflation and the cost-of-living problem, over 300 staff were laid off.

A recent report by PwC administrators indicated that tens of thousands of customers will not get their money reimbursed, and it is anticipated that nearly all 500 people who were employed at the time will be made redundant.

Consumers made deposits totalling over £13.7 million on expensive furniture items such as sofas, according to records filed with Companies House and first reported by The Guardian.

A total of £11.9 million is owed to clients, but less than £1.9 million has been returned to them through credit card insurance policies, and administrators have acknowledged that there is not enough money to pay up the entire amount.

John Pye & Sons will auction off Made.com's £19 million stock inventory, although it is anticipated to bring in less than £2 million.

The brand, domain names, and intellectual property of Made.com were acquired by Next for £3.4 million during a pre-pack administration earlier this year.

At the time, Made.com 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.

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“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.”

Source: Retail Gazette

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