Potential suitors woo Made.com as troubled retailer seeks rescue sale
Shares in the furniture company jumped on Monday morning after it told investors it has received “a number of non-binding indicative proposals”.
It comes after the business announced plans last month to seek a potential sale after it was hammered by a slump in consumer spending as well as supply chain disruption.
Made said in September that it would also carry out a “strategic headcount review” as part of a broader review as it seeks to slash costs.
More recently, it said that up to £70 million in funding will be needed over the next 18 months to secure the future of the company.
On Monday, the business said it has now received proposals from potential suitors and has invited “a select number of parties” to progress to firm offers by the end of the month.
Made told investors that the proposals include a raft of potential structures.
It added that interim financing will be needed at the time any firm offer is agreed.
It represents a sharp change in fortunes for Made, which only floated on the London Stock Exchange last January with a £775 million valuation.
Despite its shares rising by around a third on Monday morning, its market value sits at around £34 million, representing a more-than 95% slump.
It comes amid a tough time for online retailers which have seen sales slip amid the return of shoppers to high streets after the pandemic and intensifying pressure on household budgets.
Mattress seller Eve Sleep called in administrators on Monday after failing to find a buyer or new investment.