Made is set to invite potential bidders to put their initial offers forward as it goes into the next stage of its strategic review. The retailer today says it now has non-disclosure agreements in place in its discussions with a number of interested parties.
From here, Made says it plans to invite initial proposals by the middle of October. A “select number” will then be invited to take part in a second phase of the sale process – although Made points out there is no certainty that the process will end with an offer.
Today’s update marks the next step in a strategic review that the pureplay furniture business started last month, as it started to investigate its options in the light of rising inflation and falling consumer confidence. At the time it said it had frozen hiring and that it had been talking to a number of interested parties.
Made will tell potential purchasers that the current management plan for the standalone public company is likely to need extra funding of between £45m and £70m over the course of the next 18 months.
Made has been hit by headwinds including supply chain inflation that it says has led to “structurally higher” freight and carrier costs. Although it has cut back on costs and introduced a new marketplace model that doesn’t require it to have products in stock, it also concluded that its need for cash means it must review options from debt financing to outside investment and an outright sale of the business. It has said that uncertain trading conditions mean this is not a good time to raise equity on the markets.
Those interested in putting forward an expression of interest are invited in today’s announcement to contact PricewaterhouseCoopers.
Digital native Made was founded in the UK in 2010 and now sells online in nine European markets and through seven showrooms, including flagships in London and Paris. It is ranked Top250 in RXUK Top500 research.