Made.com receives non-binding proposals in rescue sale talks
Made has said it has recieved “a number of” non-binding indicative proposals, as the online homeware retailer searches for a buyer amid tumbling sales.
After reviewing the proposals, the board has invited” a select number of parties” to progress towards firm offers by the end of October, following a due diligence process, Made said on Monday.
Shares leapt almost one third higher on Monday morning in early trading, following the update.
There could be no certainty that an offer will be made, nor as to what the terms of any offer may be, as current talks may be altered or terminated at any time, Made added.
The board has already informed suitors that under current management plans, a stand-alone public company is anticipated to need aggregate funding of around £45-70m over the next 18 months.
On Monday, Made stated that any firm offer would require interim financing “at the time that firm offers are expected.”
The business only made its debut on the London Stock Exchange in January, with a valuation of £775m. Its share price has taken a hammering to the tune of 95 per cent over the past year to date.
Earlier this month, the firm shared widening losses after consumers pulled back on buying homeware items amid the cost of living crunch. Made posted a loss before tax of £35.3m for the six months to 30 June, versus £10.1m a year prior.
“The first half of the year was a challenging time for the global economy and particularly for the retail sector,” according to chief executive officer, Nicola Thompson.
Made previously said it would start cutting costs by laying off staff within the next few weeks. It was not entirely clear how many will be impacted by the cull.