Business sells itself

Online furniture retailer has put itself up for sale after concluding it would not be able to raise new equity to help sustain a business hit by the collapse in consumer confidence. UK consumption and supply chain disruptions.

Going public last year, Profit warnings in July and last month said they would need to raise more cash. The company on Friday said it would consider a range of options, including possible debt sales and financing.

“Current conditions are not supportive of raising sufficient equity from mass-market investors,” Made said in a statement.

It also said it had withdrawn its full-year financial guidance as “unexpected events over the past two weeks in the UK exacerbated a downturn in trade”.

Shares fell from an IPO price of 200p last June to 5.75p on Thursday, giving the group a market capitalization of £23million.

“While the team has had a number of strategic discussions with interested parties, the team has not received any outreach, nor discussed with any potential offending parties, at the time of announcement. hey,” Made said.

The group said falling consumer spending has prompted it to cut prices to move inventory. At the same time, its freight costs have risen from £8.2 million in 2020 to £45.3 million last year – costs it cannot pass on to consumers.

The group also announced sweeping cost cuts, first report by the Financial Times on Thursday.

“A process has begun to implement additional cost reductions, including a review of HR strategy, within the next several weeks, while maintaining the right skills and resources to enable the process to proceed. effective strategy evaluation process,” says Made.

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