400 jobs lost as Next takes control of Made.com brand
Some 573 jobs look set to go at furniture firm Made.com following Next’s decision to snap up the firm’s IP, brand and website – with 400 axed alone on Wednesday (October 9)
Administrators from PwC confirmed yesterday that the deal doesn’t include staff. Some 320 redundancies were across the business on Wednesday. In addition 79 employees who had resigned and were working their notice have been released with immediate effect.
Close to 4,500 customer orders in the UK and Europe which are already with carriers are being delivered. However, a large proportion of customer orders are still at origin in the Far East at various stages of production. Due to the impact of the business entering administration, these items cannot be completed and shipped to customers, said PwC
Zelf Hussain, joint administrator and partner, PwC, said: “The company is a casualty of the headwinds being faced by all retailers, but more heavily by those selling big-ticket products. A combination of factors including significant decline in consumer spending from cost of living pressures, rising import costs and continuing supply chain pressures has meant the business could no longer continue.
“It is with real regret that redundancies will need to be made. We would like to thank all the employees for their hard work. We will continue to support those affected at this difficult time, including assisting the HR team’s efforts to secure staff new roles. A small number of employees have been retained to support the orderly closure of the business.”
Nicola Thompson, CEO of Made.com said: “I would like to sincerely apologise to everyone – customers, employees, supplier partners, shareholders and all other stakeholders – impacted as a result of the business going into administration.
“Over the past months we have fought tooth and nail to rapidly re-size the cost base, re-engineer the sourcing and stock model, and try every possible avenue to raise fresh financing and avoid this outcome.
“Made is a much loved brand that was highly successful and well adapted, over many years, to a world of low inflation, stable consumer demand, reliable and cost efficient global supply chains and limited geo-political volatility.
“That world vanished, the business could not survive in its current iteration, and we could not pivot fast enough. The brand will now continue under new owners. I hope that a reconfigured Made will prove to be sustainable and will continue to be loved by customers.”
Rachael Wilkinson, joint administrator and director, PwC, added: “We understand those who have paid for products will be really concerned about receiving their items. The administration means many orders unfortunately cannot be fulfilled.”