Online furniture retailer Made.com has confirmed it is exploring a potential capital raise to strengthen its balance sheet.
According to a reports, MADE aims to raise around £50m through a share sale and has appointed PricewaterhouseCoopers (PwC) to examine cost-cutting and other restructuring options.
The move follows the recent fall in share value at MADE after issuing a sales and profit warning, expecting both to be lower than previous expectations. It is understood that 600 jobs could be impacted to reduce costs.
Over the last year, shares have declined around 95%, resulting in a market capitalisation of just £38m.
In response to press speculation, MADE issued this statement: “Further to the Q2 trading update published on 19 July 2022, MADE notes the recent press speculation regarding the possibility of the Group undertaking a capital raise.
“As indicated in the Q2 trading update, MADE is considering all options to allow it to strengthen its balance sheet. MADE confirms that these options include a potential equity capital raise. MADE continues to consider its options and a further announcement will be made if and when appropriate.”