// Made.com enters administration as fashion retailer Next swoops in to buy brand
// Administrators at PWC will begin the task of selling Made’s other assets
Made.com has collapsed into administration as retail giant Next snaps up its brand, domain names and intellectual property for £3.4 million.
There was initially no news on how many, if any, workers would be saved if the retailer collapses, but PWC confirmed that today’s transaction “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.
Close to 4,500 customers face uncertainty about whether the furniture they have bought from the company in recent weeks will still be delivered.
PWC joint administrator and partner, Zelf Hussain 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.”
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Made.com CEO Nicola Thompson 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.”
Thompson said Made had been a “much loved highly successful brand” that had thrived in “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,” Thompson said.
“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.”
Made.com was founded by Brent Hoberman, the Lastminute.com co-founder, and Ning Li, a Chinese entrepreneur.
It had been one of the pandemic winners, however, it has been hit by a slowdown in demand amid the cost-of-living crisis. In September it posted widening losses, and a few weeks later put itself up for sale in order to raise emergency funds.
However, no buyer could be found in the tight deadline in which the funds were required.
Made.com chair, Susanne Given said: “Having run an extensive process to secure the future of the business, we are deeply disappointed that we have reached this point and how it will affect all our stakeholders, including employees, customers, suppliers and shareholders.
“We appreciate and deeply regret the frustration that Made.com going into administration will have caused for everyone.”
Administrators at PWC will begin the task of selling Made’s other assets and paying off its debts to creditors.
