The furniture company saw its shares fall 90% after it said that no buyers were available to meet the deadline.
Made.com is closer to collapse after rescue talks failed to find a buyer.
The company is well-known for making fashionable homeware such as velvet sofas, lighting, and rattan furniture. It announced that it was in talks with several interested parties at the beginning of October. It had established a deadline of October 31st for firm offers.
According to the retailer, none of its potential buyers could meet the deadline and it was not in receipt of any funding proposals or offers for the issued and to-be issued shares capital.
Made.com said that it had ended rescue talks and that it couldn’t be certain that any offer would have been made for the company, or that any investment or offer would be appropriate.
Made.com stated in a statement to the stock market that “if further funding is not possible or a firm proposal for the company is rejected before cash reserves are exhausted, the board will take appropriate steps to preserve value to creditors.”
On Tuesday, the London Stock Exchange saw shares of the retailer plunged by almost 90%, taking them to below 1p from 200p. The shares have plunged by 99.5% this year.
The remarkable turnaround of fortunes in the British furniture industry occurred less than 18 months after it floated to the stock exchange in June 2021, with a market capitalization of £775m.
Made.com shares have plummeted from a listing price of 200p to below 1p over that period. On Tuesday, the company stated it would examine whether to suspend its shares.
This comes after a tough few months for, which was one of the beneficiaries during the pandemic. had spent money renovating their homes and was one of the top winners.
Made.com warns of job cuts in July, as consumers become more cash-strapped and reduce their spending on big-ticket items like furniture.
Made.com suffered from industry-wide supply chain problems in 2021. Covid lockdowns caused global port congestion, extended shipping times, and delivery delays.
