16 months after its IPO, UK online retailer Made.com is preparing for administration

Made.com, a UK-based e-commerce company that sells related furniture and home appliances in seven European markets, is preparing for bankruptcy after it confirmed plans to appoint administrators after failing to find a buyer.

Founded in 2010, Made.com has emerged as a darling of the UK startup scene (having been involved in physical journeys for several years). The company has raised about $137 million from some of Europe’s leading investors.

Today’s news comes a year after the London-based company went public on the London Stock Exchange, a move that immediately saw its shares plunge 7% on its first day of trading. Made.com initially priced its shares at 200 pence, giving it a valuation of around 775 million pounds ($894 million), but its fortunes have never recovered since its IPO in June 2021 as its shares have continued to rise. declined in the following months. An all-time high of 34p.

Today’s announcement should come as no surprise. Made.com revealed in September that it was considering job cuts and a possible sale after being hit by the economic slowdown and disruptions in its supply chain. Indeed, the company’s losses widened in the first half of the year, rising from £10.1m to £35.3m in the first half of 2021.

While Made.com previously said it was in active discussions with potential buyers, things took a turn for the worse last week when the company stopped taking new orders and revealed it would not process any requests for refunds or returns. With the clock ticking to find a buyer until the end of October, Made.com has now confirmed that none of the interested parties have been able to “meet the required deadline” to close a deal, and discussions have ended.

Made.com has temporarily suspended trading in its common stock as PricewaterhouseCoopers is lined up as a steward, though this could be a permanent change.