Leicester-based retailer Next have snapped up troubled e-commerce company Made.com from administrators for an undisclosed sum.
The transaction however does not include its 600 strong workforce, many of whom are to be let go. Administrators state: “This [the deal] will sadly result in 320 redundancies across the business. In addition 79 employees who had resigned and were working their notice have been released with immediate effect. ”
Zelf Hussain, Rachael Wilkinson and Peter Dickens of PwC had been appointed as joint administrators of Made.com Design Ltd. The appointment was made as the high-value retail sector continues to be exposed to the current testing economic conditions.
Made.com is a British e-commerce company based in London that designs and sells furniture and home accessories online. The business has 573 permanent employees, with warehouses in the UK and Belgium, alongside offices and showrooms in London, Europe and Vietnam.
On appointment, the joint administrators completed a sale of the brand, website and intellectual property of Made.com to Next Retail Limited.
This transaction represents the best option available to generate returns for creditors as a whole, under severely limited timescales.
Close to 4500 customer orders in the UK and Europe which are already with carriers are being delivered. However, a large proportion of customer orders are still at origin in the Far East at various stages of production. Due to the impact of the business entering administration, these items cannot be completed and shipped to customers.
Zelf Hussain, joint administrator and partner, PwC, said: “The company is a casualty of the headwinds being faced by all retailers, but more heavily by those selling big-ticket products. A combination of factors including significant decline in consumer spending from cost of living pressures, rising import costs and continuing supply chain pressures has meant the business could no longer continue.
“It is with real regret that redundancies will need to be made. We would like to thank all the employees for their hard work. We will continue to support those affected at this difficult time, including assisting the HR team’s efforts to secure staff new roles. A small number of employees have been retained to support the orderly closure of the business.”
Nicola Thompson, Leo of Made.com said: “I would like to sincerely apologise to everyone – customers, employees, supplier partners, shareholders and all other stakeholders – impacted as a result of the business going into administration.
“Over the past months we have fought tooth and nail to rapidly re-size the cost base, re-engineer the sourcing and stock model, and try every possible avenue to raise fresh financing and avoid this outcome.
“Made is a much loved brand that was highly successful and well adapted, over many years, to a world of low inflation, stable consumer demand, reliable and cost efficient global supply chains and limited geo-political volatility.
“That world vanished, the business could not survive in its current iteration, and we could not pivot fast enough. The brand will now continue under new owners. I hope that a reconfigured Made will prove to be sustainable and will continue to be loved by customers.”
Rachael Wilkinson, joint administrator and director, PwC, added: “We understand those who have paid for products will be really concerned about receiving their items. The administration means many orders unfortunately cannot be fulfilled.”
