Next has struck a deal with the insolvency administrators of Made.com to buy the collapsed online furniture retailer for £3.4 million (€3.86 million.)
Made.com confirmed on Wednesday it has entered an insolvency process and has appointed PwC as administrator after struggling for survival for months amid falling demand and surging inflation.
Next, which sells clothing and homewares, confirmed it has agreed to buy Made.com’s brand, domain names and intellectual property.
The price tag demonstrates how far Made.com has fallen after listing last year with a valuation of £775 million. It is one of the fastest corporate collapses in UK history as soaring freight costs and supply chain difficulties have weighed on the company, compounded by weaker consumer sentiment – especially for big-ticket items such as sofas.
PwC will try to sell any other remaining assets left in the business. Next stock fell 1 per cent in early London trade.
The deal does not cover the company’s staff, and more than 300 workers are being made redundant. About 4,500 customer orders in the UK and elsewhere in Europe are being delivered, though many will be cancelled.
The retailer was a winner during the pandemic as people stuck at home bought furniture online, and it was hailed as a millennial favourite. The move back to shopping in stores contributed to its demise.
Brent Hoberman, the creator of travel website Lastminute.com, co-founded Made.com in 2010 in an attempt to offer stylish furniture at cheaper prices by selling directly to consumers and eliminating traditional retailers. – Bloomberg
