Made.com shares nosedive after rescue sale talks fail
The company saw its market value almost completely wiped out after the retail group failed to secure a suitor following discussions over a sale.
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Your support makes all the difference.Online furniture firm Made.com has revealed that talks to secure a rescue sale have collapsed.
The company saw 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 raft 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 £70 million 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
On Tuesday, the listed company confirmed that talks with potentially interested parties, which they hoped would securer a buyer by the end of the month, have ended.
“Following further discussion, those parties have all now confirmed to the company that they are unable to meet the necessary timetable,” the company said.
“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.”
Made’s board added that the business is considering its current position and will make a further announcement in due course.
It added: “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.”
It comes less than two years after Made floated on the stock market with a £775 million valuation.
Shares tumbled 93% further on Tuesday to 0.5p per share, bringing its value down below £2 million.
Made said it has requested that its shares be suspended from London Stock Exchange.