The online furniture seller Made.com, in serious difficulties and having failed to find new sources of financing, announced on Tuesday that it was placed in administration with a view to its liquidation and the suspension of its action on the London Stock Exchange. .
The British company announced on Tuesday “its intention to appoint directors” of the PwC firm, and “following a request from the board of directors, the company’s ordinary shares have been suspended” on the London Stock Exchange, according to a Press release. . .
Eventually the listing “will be cancelled, any residual value will be distributed to shareholders and the company will be liquidated,” he said.
Suffering from a drop in demand, due in particular to inflation and the global disruption of supply chains, the company had warned in September that it was evaluating “different strategic options”.
no more orders
Known for its comfortable colored velvet sofas, the company has suffered a reversal of fortune since its IPO in June 2021. Its market capitalization was then worth about 775 million pounds and its title 200 pence, values that have vanished since then.
His stock has lost more than 99% of its value since the beginning of the year, now it’s worth only half a penny.
“It’s a dramatic drop for a company known for its stylish ranges” but “clearly out of reach for many as the cost of living crisis still rages on” and prompting many households, particularly in the UK, to watch their spending up close, according to Susannah Streeter, an analyst at Hargreaves Lansdown.
No certainty of resale
At the end of October, the company that sold its furniture in the United Kingdom, but also in other European countries such as France, Switzerland, Belgium or even Germany, announced the interruption of its negotiations with potential buyers and the cessation of new orders in a subsidiary. .
However, he has received expressions of interest from potential buyers, “interested in almost all or only part of the company, its assets and its brands,” he said on Tuesday.
But if a sale were to take place, without “any certainty”, it would now be carried out by administrators, he added.
The board of directors had said in September that it had also considered a capital increase, but considered that “current conditions do not allow obtaining sufficient capital from investors.”
It remains to be seen how the thousands of customers whose orders will not be fulfilled will be reimbursed.
Source: BFM TV
