Next wins race for Made.com after administrators are named
The rumours surrounding Made.com in recent days were confirmed on Wednesday with news, that Next Retail Limited is to acquire the brand, domain names and intellectual property of the business.
Next already has a major furniture retail operation and its experience in acquiring and nurturing brands should stand it in good stead as it moves forward with Made.
Meanwhile, Made also said that it has now appointed Zelf Hussain, Peter David Dickens and Rachael Maria Wilkinson of PricewaterhouseCoopers as administrators.
It didn't say how much Next has paid for the business, but there has been speculation of a price around £2 million.
Made added that the other assets remaining in the estate that Next isn't taking over “will be realised by the administrators in due course and payments made to creditors in accordance with the statutory priority”.
Next itself hasn't yet commented on the acquisition. It had been reported that Frasers group was also interested in buying the brand.
The furniture seller’s ordinary shares were suspended from trading on the London Stock Exchange's Main Market on 1 November and in due course the listing will be cancelled and the company will be wound up.
Made chair Susanne Given 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. We appreciate and deeply regret the frustration that going into administration will have caused for everyone.”
The company's shares had fallen to almost zero value-wise in recent months, giving the business a market capitalisation of just around £2 million. It was all so different from mid-2021 when it listed on the stock exchange and its shares were changing hands for around £2 each, valuing the company at hundreds of millions of pounds.
Earlier this year, Made was still looking at expansion and acquired Trouva in May.
But external and internal circumstances, conspired to devastate the business that ran out of cash, and despite attempts to find a new backing, it was clear that it would be headed for administration at some point.
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