Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Next has acquired the Made.com brand for £3.4m following the furniture retailer’s collapse into administration, which may see the loss of up to 500 jobs.
It comes as MDL, Made’s operating subsidiary, appointed Zelf Hussain, Peter David Dickens and Rachael Maria Wilkinson of PwC as administrators of the group.
Following their appointment, Next has agreed to acquire the brand, domain names and intellectual property of MDL.
The administrators will sell off the estate’s remaining assets “in due course”, and payments will be made to its creditors.
The news comes after Made.com suspended its shares from trading on the London Stock Exchange last week (1 November).
Susanne Given, chair of Made, said: “Having run an extensive process to secure the future of the business, we are deeply disappointed that we have reached this point and how it will affect all our stakeholders, including employees, customers, suppliers and shareholders. We appreciate and deeply regret the frustration that MDL going into administration will have caused for everyone.
“I want to sincerely thank all our employees, customers, suppliers and partners for your support throughout the past 12 years and especially during this difficult time where we have tried so hard to find a workable solution for the Company and all its stakeholders.”
PwC added: “On appointment, the joint administrators completed a sale of the brand, website and intellectual property of the company to Next Retail Limited. This transaction represents the best option available to generate returns for creditors as a whole, under severely limited timescales.
“However, the transaction does not include staff. Consequently this will sadly result in 320 redundancies across the business today. In addition 79 employees who had resigned and were working their notice have been released with immediate effect.”
Made.com had previously announced a strategic review of the business, including a formal sale process to sell the business. The company and its advisers then held discussions with a number of interested parties and explored possible offers.
However, on 25 October, the retailer said that the select number of interested parties were unable to meet the deadline for the end of October, and those discussions had consequently been terminated.
The board also temporarily suspended new customer orders on 26 October in light of MDL’s requirement for further funding and in order to preserve value for its creditors.
