The brand of furniture seller Made.com will be bought by the British clothing group Next, the latter announced in a press release on Wednesday 9 November. The three administrators appointed Tuesday by the operating subsidiary of Made.com, MDL, have “entered into an agreement with Next Retail Limited to acquire the trademark, domain names and intellectual property of MDL”specifies the press release, without giving an amount.
Administrators should attempt to monetize the other remaining assets of Made and “payments to creditors will be made according to their statutory priorities”the statement said. “We are deeply disappointed to have come to this point” and that this has an impact on “our employees, customers, suppliers and shareholders”commented the president of Made.com, Susanne Given.
Many of the several hundred employees are at risk of layoff. Mme Given also thanked all those involved with the company for their support during “the past twelve years and especially in this difficult time, after we have worked so hard to find a solution” to save society, to no avail.
IPO in June 2021
Made.com, failing to have succeeded in finding new sources of financing, had announced last week its intention to place itself under administration with a view to its liquidation, and the suspension of its action on the London Stock Exchange, which should be soon to be completely delisted. Suffering from falling demand, including from inflation and the global disruption of supply chains, the company warned in September that it was assessing “different strategic options”.
Known for its colorful velvet sofas, the company has suffered a reversal of fortune since its IPO in June 2021. Its market capitalization was then worth some 775 million pounds and its title 200 pence, values gone up in smoke since.
At the end of October, the company which sold its furniture in the United Kingdom, but also in other European countries such as France, Switzerland, Belgium or even Germany, had announced the interruption of its negotiations with potential buyers and a halt to new orders at a subsidiary.