Made.com halts new customer orders 'to preserve creditor value'

Troubled online furniture retailer Made.com has suspended new customer orders a day after talks on a rescue sale collapsed and shares in the company were suspended.

Made.com said the decision had been taken to "preserve value for its creditors" and would keep the decision under review.

"The board of Made will continue to look to preserve value for its creditors and shareholders in light of this decision," it added.

Shares in the firm were suspended late on Tuesday as the company confirmed that talks with potentially interested parties, which they hoped would securer a buyer by the end of the month, had ended.

Its market value almost completely wiped out after the retail group indicated it could be forced towards insolvency unless another potential suitor appears or fresh funding is found.

Last week, Made.com revealed it had received a series of takeover proposals as part of a formal sale after it was hammered by a slump in consumer spending as well as supply chain disruption.

In recent months, the company has warned it was considering cuts to staffing numbers and would need £70m in funding to secure its future over the next 18 months.

“Following further discussion, those parties have all now confirmed to the company that they are unable to meet the necessary timetable,” the company in a statement on Tuesday.

“As a result, those discussions have been terminated and the company is no longer in receipt of funding proposals or possible offers for the issued and to be issued share capital of the company.”

“If further funding cannot be raised, or a firm offer for the company is not received before the company’s cash reserves are fully depleted, the board will take the appropriate steps to preserve value for creditors. There can be no certainty that the terms of any offer or investment received will be suitable.”

The news comes less than two years after Made floated on the stock market with a £775m. Shares slumped 93% on Tuesday to 0.5p per share, bringing its value down below £2m.

Reporting by Frank Prenesti for Sharecast.com