573 people have been made redundant by collapsed online retailer Made.com after a pre-pack administration deal was agreed with Next.
The retail giant will not transition any staff across as part of the £3.4 million deal for the brand, domain names and intellectual property of the eCommerce business.
Made.com joined the main market of the London Stock Exchange in June 2021 at a valuation of £775 million.
Administrators at PwC said 320 people had been made redundant prior to the deal while 79 others, already working notice periods, have now been let go with immediate effect. The other staff are being retained for a short period to assist the transition.
“Close to 4,500 customer orders in the UK and Europe which are already with carriers are being delivered,” read a statement. “However, a large proportion of customer orders are still at origin in the Far East at various stages of production.
“Due to the impact of the business entering administration, these items cannot be completed and shipped to customers.”
Around 12,000 UK orders are outstanding. Made.com said customers will not be able to get a refund from the company directly and should instead ask their bank provider.
The firm collapsed into administration after failing to stem increasing losses caused by the move back towards buying furniture in-store.
After failing to find a buyer, it suspended new furniture orders late last month and requested the suspension of trading in its shares.
The London-headquartered company had blamed a decline in discretionary consumer spending – stemming from increased inflation and a steep decline in consumer confidence – and the accompanying ‘headwind’ of deglobalisation and destabilisation of supply chains for the decision to seek a buyer.
Nicola Thompson (pictured) replaced Philippe Chainieux as CEO when he quit in February, while finance director Adrian Evans exited soon afterwards.
“I would like to sincerely apologise to everyone – customers, employees, supplier partners, shareholders and all other stakeholders – impacted as a result of the business going into administration,” said Thompson.
“Over the past months we have fought tooth and nail to rapidly re-size the cost base, re-engineer the sourcing and stock model, and try every possible avenue to raise fresh financing and avoid this outcome.
“Made is a much-loved brand that was highly successful and well adapted, over many years, to a world of low inflation, stable consumer demand, reliable and cost efficient global supply chains and limited geo-political volatility.
“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. I hope that a reconfigured Made will prove to be sustainable and will continue to be loved by customers.”