// Made.com said it has received “a number of” non-binding indicative proposals
// Due to the state of its finances, any deal will require any prospective buyer to provide interim financing at the offer stage to keep the retailer running
Made.com has entered talks with a number of companies with the aim of securing a rescue deal by the end of the month amid plunging sales.
Last month, the furniture retailer cut more than a third of its staff and kicked off a process to find a buyer following an unsuccessful fundraising round.
“The board of Made.com has received a number of non-binding indicative proposals,” the company said.
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After reviewing the proposals, the board has invited “a select number of parties” to progress towards firm offers by the end of October, following a due diligence process, Made said.
The retailer added that there could be no certainty that an offer will be made, nor as to what the terms of any offer may be, as current talks may be altered or terminated at any time.
The board has informed suitors that under current management plans, a stand-alone public company is anticipated to need aggregate funding of up to £70 million over the next 18 months.
The retailer said that any firm offer would require interim financing “at the time that firm offers are expected”.
At the start of the month, the retailer reported widening losses after a slowdown in demand for homeware items amid the cost-of-living crisis.
The company posted a loss before tax of £35.3 million for the six months to 30 June, versus £10.1m a year prior.
“The first half of the year was a challenging time for the global economy and particularly for the retail sector,” said chief executive Nicola Thompson.
Made.com said the review of worker numbers will take place “within the next few weeks” while it is not clear how many employees will be impacted by the cull.
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