Made has ended its sale process, saying that it was no longer in receipt of any potential offers. Instead, it will continue with a strategic review process that is exploring its future options.
The online-only homewares retailer started its strategic review in September, in the face of rising costs in areas from its supply chain to energy prices. Its freight costs rose from £8.2m in the second half of 2020 to £45.3m in the second half of 2021, for example. Customer spending fell at the same time.
A possible sale was one part of its strategic review but that has now come to an end with no offers received. “Having considered the nature of ongoing discussions with interested parties as part of the company’s strategic review process, the board has concluded that there is no reasonable prospect that an offer for the issue and to be issued share capital of the company will be forthcoming and has accordingly decided to terminate the formal sales process under the Takeover Code,” Made said in an update today. “The board of Made will continue to look to preserve value for its creators and shareholders as part of the ongoing strategic review and a further update will be made as and when appropriate.”
The retailer has previously said that the current management plan for the standalone public company would be likely to require extra funding of between £45m and £70m over the next 18 months.
Digital native Made was founded in the UK in 2010 in order to link furniture designers and makers directly to shoppers. It now sells online in nine European markets and through seven showrooms, including flagships in London and Paris.
The business, which listed on the stockmarket in 2021, saw sales grow quickly during the pandemic, when shoppers spent more on homes that they were spending more time in. It invested in warehousing in order to speed up delivery times. However, in its latest half-year, to June 30 2022, revenues grew by 4.2% to £178.2m, compared to a year earlier, and pre-tax losses widened to £35.3m as demand reduced and the retailer had to discount to clear stock.
Made is ranked Top250 in RXUK Top500 research.