Next will not retain any employees as it acquires a portion of a failing online furniture retailer.
Made.com has entered administration, resulting in the termination of all 573 employees and the suspension of thousands of customer orders.
When it was reported that the online furniture retailer’s operating company had formally folded and that rival Next had acquired the brand, website, and intellectual property, it was initially unknown whether any employees would be saved.
Administrators at PricewaterhouseCoopers (PWC) later disclosed that 320 employees had been laid off thus far, while 79 others who had been working notice periods were also let go immediately.
It is believed that the remainder were held for a little duration to facilitate the transfer.
PwC was tasked with selling the company’s other assets and paying off its debts to creditors.
Regarding the prospects for outstanding purchases, administrators stated: “Nearly 4,500 client orders already with carriers in the United Kingdom and Europe are being delivered.
“Despite this, a significant amount of client orders continue to originate in the Far East at varying stages of production.
Due to the effects of the company filing for bankruptcy, these items cannot be completed and shipped to customers.
Anyone concerned about their orders is encouraged to contact administrators, while financial experts advise those who have suffered losses to file refund claims with their card or credit issuers.
Just over a week following the suspension of Made.com share trading, it was anticipated that the parent company’s stock exchange listing would be canceled.
Chief executive officer Nicola Thompson stated, “I would like to extend my sincerest apologies to all affected parties, including customers, workers, supplier partners, shareholders, and all other stakeholders, as a result of the company’s administration.
“We have fought tooth and nail over the past few months to swiftly resize the cost base, re-engineer the sourcing and stock strategy, and explore every conceivable option to secure new finance to avert this outcome.
Made is a well-liked brand that has been tremendously profitable and well-adapted over many years to a world of low inflation, stable consumer demand, trustworthy and cost-effective global supply networks, and limited geopolitical turbulence.
This world disappeared, the business could not exist in its current form, and we were unable to adapt quickly enough.
“The brand will now be operated by new owners. I hope that a revamped Made will be viable and continue to be adored by consumers.”
Made.com was founded by Brent Hoberman, co-founder of Lastminute.com, and Ning Li, a Chinese entrepreneur, and went public in London last year with a valuation of £775 million due to stellar sales during the COVID outbreak.
Its market value had dropped to £2.1 million when trading was banned.
Its share price’s disastrous collapse was also influenced by a crash in technology-related equities.
Made, which considered a cash call to raise £50 million from shareholders before opting for a sale, at its peak employed 700 individuals.
Next had not yet commented.
The unknown is the amount paid for the assets it has acquired.
In recent years, the corporation has acquired shares in or purchased smaller retailers, including Victoria’s Secret UK and Reiss.
