Yahoo Finance Made.com collapse puts hundreds of jobs at risk
Online furniture retailer Made.com has collapsed into administration after failing to find a buyer, leading to the loss of over 500 jobs.
The UK e-commerce furniture company Made.com (MADE.L) has struggled to stay afloat amid the cost-of-living crisis, as most households have been cutting back on purchases in recent months, affecting businesses like Made.com.
On Wednesday the Made.com website said: "Sorry, MADE is not currently taking any new orders.
Made Design Ltd has filed a notice of intention to appoint administrators."
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The firm, which expanded after soaring sales during successive coronavirus lockdowns, has appointed PWC as the administrator.
British multinational clothing, footwear and home retailer Next (NXT.L) has now said it will purchase the Made.com brand name, website and intellectual property.
Made.com (MADE.L) employees face an uncertain future, as do thousands of customers who will not know whether they will receive a refund for outstanding orders.
Speaking about the uncertainty for employees and customers following the collapse of the online retailer, Lisa Webb, Which? Consumer Rights Expert, said: “The news that Made.com is entering administration will be devastating for employees, as well as a real concern for customers with orders placed, particularly as exercising your rights is not always straightforward in these circumstances.
“When a company enters administration, it may not accept the return of items. Many customers could find themselves in a situation where items have not been delivered. It is always worth trying to claim for a refund in this situation, but customers should know it is not guaranteed. The cost of repairs for faulty items could still be claimed if they came with a warranty.
“If you’ve bought something on your credit card costing more than £100, the card provider is jointly responsible for any breaches of contract. You can claim under Section 75 of the Consumer Credit Act if the item is faulty or not delivered. If you paid for goods that cost less than £100 on a credit or debit card, you may be able to claim under chargeback.”
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Susanne Given, chair of Made (MADE.L), 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."
She added: "We appreciate and deeply regret the frustration that Made.com going into administration will have caused for everyone."
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The chief executive of Made, Nicola Thompson, apologised to those that would face a detrimental impact from the retailer's collapse, stating that the company had "fought tooth and nail" to avoid this outcome.
She described Made.com as a "much-loved brand" that had thrived in a world of lower prices, stable demand from its customers and reliable supply chains.
But she continued: "That world vanished, the business could not survive in its current iteration, and we could not pivot fast enough. The brand will now continue under new owners."
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