Made.com in talks with suitors in effort to raise £70m

MADE.COM, the online furniture retailer, has started talks with a number of potential buyers as it scrambles to raise £70m over the next year.

Shares in the company jumped more than 20pc after it said interested parties would be invited to make offers in the next few weeks. A select number will then be invited to take part in a second bidding process.

The sale comes amid a slump in demand for high-end furniture. Two weeks ago Made.com hired PWC to help assess its options.

At the time, it said it had not yet received any approaches and was not in discussions with any suitors. In an update yesterday, Made.com said it will be telling bidders that it expects to need a cash injection of between £45m and £70m over the next year and a half to remain as a standalone public company.

The step towards a sale of the business comes after a tough year for Made. com, which has seen it battle supply chain pressures. In recent months it has also been reeling from a downturn in sales of “big ticket” items such as sofas and dining tables, as customers face mounting cost of living pressures.

It has warned over profits three times in the past year, and is now cutting more than 200 roles, equal to more than a third of its staff.

The company said it has been forced to make the cuts and put itself up for sale after market conditions changed “radically” in the past year, which meant it was no longer able to raise more funds from its investors.

Shares in Made.com have collapsed almost 98pc since its float last year. At the time, in June 2021, it was valued at around £775m compared to around £16m now.