E-furniture seller Made suspends trading as scrambles for survival

LONDON — Millennial-oriented furniture retailer Made.com on Tuesday suspended trading of its shares on the London Stock Exchange, after failing to agree a rescue deal before a November deadline.

The struggling company, which halted new customer orders on Oct. 26, also filed notice of its intention to appoint administrators from PricewaterhouseCoopers.

Made now has a 10-day period when it is protected from creditor action, during which it plans to engage in final talks in hopes of agreeing a full or partial sale before administrators are brought in.

In its notice, it said it had received proposals to acquire some or all of its trade, assets and brands, but could not guarantee these would complete.

It also said the board currently expected its shares to be canceled, with any remaining value distributed among shareholders.

Made listed on the London Stock Exchange in June 2021 at £1.99 per share, valuing the company at £775 million ($893 million), after it experienced bumper sales boosted by people revamping their homes during the coronavirus pandemic.

But its share price has been on a steady decline since its IPO, which accelerated amid the risk-off environment of 2022 that has pummeled tech stocks.

Its shares hit 20 pence in July, when the company cut its revenue and profit forecasts for the third time in a year, and at the time of suspension on Tuesday they were worth less than 1 pence.

Made.com became known for its range of Scandinavian, retro-inspired and brightly-colored furniture, with pieces such as its velvet sofas being shared widely on Instagram, helped by its use of influencer marketing.

However, customers also grumbled about long delivery times on some items, particularly as global supply chain issues intensified in 2021.

It reported £372 million revenue in 2021, up 50% on the previous year, but its EBITDA losses (earnings before interest, taxes, depreciation, and amortization) expanded from £2.9 million to £18.3 million.

It had also considered tapping shareholders for additional funding before announcing it was seeking a buyer or emergency investment in September, saying conditions were “not supportive at the current time of raising sufficient equity from public market investors.”

At the time, it also said it would look to lay off a number of its 700-strong workforce, which the Financial Times estimated would amount to 30%.

U.K. retail sales data for September showed shoppers cut back on purchases of items such as TVs, computers and furniture, but boosted sales of energy-efficient appliances…