Made.com calls in advisers to shore up balance sheet
Successfully launching a share sale to raise in the region of £50m will be challenging for Made.com given that its shares have plummeted by almost 95% during the last year, leaving it with a market capitalisation of just £38m.
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Made.com Group, the online furniture retailer, has reportedly called in advisers to help shore up its balance sheet as it plans for a share sale to raise approximately £50m, according to Sky News.
The London-listed company has hired PricewaterhouseCoopers (PwC) to evaluate cost-cutting strategies and restructuring options.
Made.com is said to be also planning to raise equity almost a month after it said that it was exploring ways to strengthen its financial position.
The launch of a cash call is not thought to be immediate, but is said to be likely to require shareholder approval.
Last month, the company saw its shares sink after warning that revenue and profit for the year would be well below expectations.
Job cuts from its workforce of about 600 people are regarded as likely in the short term.
Made.com was established by Brent Hoberman, the Lastminute.com co-founder, and Ning Li, a Chinese entrepreneur, and went public in London last year with a valuation of £775m.
The news follows from Made.com issuing profit warning in July 2022, it now expects annual losses of £50m to £70m, up from a previous forecast of £15m to £30m made in May.
Retail Sector has contacted Made.com for comment.
