Online furniture retailer Made.com moves closer to administration

Chris Price Retail
Share

Made.com
Online furniture retailer Made.com has moved a step closer towards administration after the company’s shares were suspended on Tuesday.

The firm announced last week that rescue talks to find a buyer for the business had so far failed. It has stopped taking new orders and bosses have warned cash reserves could run out if further funding cannot be raised.

Made.com, which was launched in 2011, employed 700 staff at the end 2021. During the pandemic, Made.com’s sales surged as people spent more time at home during lockdowns and splashed out on furniture and homeware purchases online.

However, more recently households have cut back on big-ticket purchases, under pressure from soaring food and energy bills, while global supply chain problems have disrupted deliveries.

On Tuesday, Made.com announced that trading in its shares had been suspended. It also said it intended to appoint administrators which means the firm is not yet in administration but heading towards it.

The move gives the company 10 days of breathing space to find new backers or sell all or part of the business, a company source told the BBC.

Says Lisa Webb, Which? Consumer Rights Expert: 
 
“This news about Made.com will understandably be concerning to customers who have orders pending or are looking to return an item.
 
“When a company is in administration, it may not accept the return of items. Many customers may 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.”
Chris Price
For latest tech stories go to TechDigest.tv