Online furniture retailer Made.com has revealed that talks with selected parties over a potential offer for the company have broken down and that it has now terminated the sale process entirely.
In an updated statement, MADE said: “The Company is no longer in receipt of any possible offers for the issued and to be issued share capital of the Company. Having considered the nature of ongoing discussions with interested parties as part of the Company’s strategic review process, the Board has concluded that there is no reasonable prospect that an offer for the issued and to be issued share capital of the Company will be forthcoming and has accordingly decided to terminate the formal sales process under the Takeover Code. Accordingly, the Company is no longer in an offer period.”
MADE is reviewing its position and indicated it will take ‘appropriate steps to preserve value for creditors’.
In a previous statement, MADE said: “The Board invited a select number of parties to work towards firm offers by the end of October. Following further discussion, those parties have all now confirmed to the Company that they are unable to meet the necessary timetable.
“As a result, those discussions have been terminated and the Company is no longer in receipt of funding proposals or possible offers for the issued and to be issued share capital of the Company. Whilst at this stage the FSP is ongoing, there can be no certainty that an offer will be made, nor as to what the terms of any offer may be.
“The Board is considering the position and a further announcement will be made in due course. If further funding cannot be raised, or a firm offer for the Company is not received before the Company’s cash reserves are fully depleted, the Board will take the appropriate steps to preserve value for creditors. There can be no certainty that the terms of any offer or investment received will be suitable.
“In light of the above, the Company may determine that it is appropriate to request a suspension of listing of the Company’s ordinary shares on the London Stock Exchange’s Main Market for listed securities. A further announcement will be made in due course.”
Following the developments, the board of MADE’s operating subsidiary Made Design Ltd (MDL) has considered the appropriate next steps.
MADE said: “In light of the fact that MDL is reliant on MADE for any further funding requirements and in order to preserve value for its creditors, the board of MDL has taken the decision to temporarily suspend new customer orders. This decision remains under review and a further announcement will be made as appropriate. The board of MADE will continue to look to preserve value for its creditors and shareholders in light of this decision.”
MADE previously entered into non-disclosure agreements and begun discussions with a number of interested parties regarding the sale of the company.