A Massive Furniture Company Is Going Out Of Business, Can’t Fulfill Orders
Furniture company Made.com looks like it is going out of business and may not be able to complete orders that have already been put through.
Furniture store, Made.com is coming close to administration as they had their shares suspended last week. The COVID-19 pandemic has made big and small companies rethink everything about how they conduct business, source their materials, and advertise their products. No business or brand was safe from the destruction that came from the 2020 pandemic, with many global brands succumbing to the relentless pressure. Unfortunately, Made.com is the next brand to feel the wrath of post-pandemic life.
This Made.com decline is a fast turnaround for a company that flourished during the pandemic and was valued at $775 million (British pound sterling). While it has stopped taking any new orders for its product, it will still commit to any orders that have been made before the news of its financial state was released.
The commitment to honor their existing orders may change if they officially go into administration or are bought by a new owner.
Made.com has been a furniture retailer for over ten years and offers furniture that looks “high-end” but at an affordable price. It was able to keep the costs of its product down due to sourcing directly from manufacturers. During the pandemic, it was one of the internet-based companies that saw a rise in sales as people focused on DIY and decorating. It expanded considerably over the last number of years and was listed on the London Stock Exchange last year.
But as the aftermath of the pandemic hits families and households all over the globe, many people have cut back on expendable spending such as decorating and buying new furniture, which has caused unreputable damage to Made.com.
Made.com’s co-founders believed that the company lost sight of its original mantra of “simplicity” and, because of their success, started holding large amounts of stock, which they are now stuck with due to a rapid decline in sales.
In the coming days or weeks, it will appoint administrators if they do not find new investments or sell the company within the next ten days. But all is not lost; in a statement, Made.com has detailed that they have received interest from different parties so they could be saved yet.
Many questions are being asked about how Made.com has spent its enormous profit over the last number of years, as they have stated that their cash flow is running out.
Made.com is not the first and won’t be the last company to struggle following the COVID-19 pandemic and the subsequent global financial crisis. All internet-based businesses are feeling the pinch of hyperinflation, with online retail sales and share prices dropping steadily after the pandemic.
There still might be hope for Made.com as businesses have come back from worse; look at Costco. This business will not be the last story we will hear of retailers collapsing under the pressure of the economic and financial situation everyone is facing on a daily basis. Hopefully, once the world finally steadies itself after the pandemic, we will still have independent retailers and not just the mega-companies left.
