Wow - that was fast!

[MBE2017]

“Made.com said in a statement to the stock market: “If further funding cannot be raised, or a firm offer for the company is not received before the company’s cash reserves are fully depleted, the board will take the appropriate steps to preserve value for creditors.”

The retailer’s shares plunged by nearly 90% on the London Stock Exchange on Tuesday, taking them below 1p, from a listing price of 200p. The shares have tumbled by 99.5% so far this year.

It has been a remarkable reversal of fortunes for the British furniture business, less than 18 months after it floated on the stock market in June 2021 with a market value of £775m.”

I have mentioned in the past to be careful extending credit too easily, sad to see what appeared to be a highly successful retailer crash so fast. Whilst unfortunate, use it as a lesson guys, don’t think because a company has fancy offices, shops, vehicles etc they are doing well, most companies are leasing or renting such items, like most people you meet they are living month to month.

This is only one company, I bet there are hundreds in a near similar position, unknown to most to be on the brink. In a recession cash becomes king, cash flow is always king in any trading situation. Be careful who you lend to, get those overdue accounts brought up to date ASAP to avoid the same happening to yourselves.

I don’t know the exact reasons for Made.com demise, but I can guarantee plenty of their suppliers will be out of pocket once they go under.

 

[Mark T Jones]

“Made.com said in a statement to the stock market: “If further funding cannot be raised, or a firm offer for the company is not received before the company’s cash reserves are fully depleted, the board will take the appropriate steps to preserve value for creditors.”

The retailer’s shares plunged by nearly 90% on the London Stock Exchange on Tuesday, taking them below 1p, from a listing price of 200p. The shares have tumbled by 99.5% so far this year.

It has been a remarkable reversal of fortunes for the British furniture business, less than 18 months after it floated on the stock market in June 2021 with a market value of £775m.”

I have mentioned in the past to be careful extending credit too easily, sad to see what appeared to be a highly successful retailer crash so fast. Whilst unfortunate, use it as a lesson guys, don’t think because a company has fancy offices, shops, vehicles etc they are doing well, most companies are leasing or renting such items, like most people you meet they are living month to month.

This is only one company, I bet there are hundreds in a near similar position, unknown to most to be on the brink. In a recession cash becomes king, cash flow is always king in any trading situation. Be careful who you lend to, get those overdue accounts brought up to date ASAP to avoid the same happening to yourselves.

I don’t know the exact reasons for Made.com demise, but I can guarantee plenty of their suppliers will be out of pocket once they go under.

'Previously successful' is an interesting phrase, isn't it?

Group losses Dec 2020 £14.6 million

Dec 2019 £19.3 million.

Perhaps it just rode the market rather well?

 

[J_A_M_E_S]

Some interesting stats here:

Floated at a value of £775m
Now valued at £2m

Sales of £372m in 2021
Burned through £185m since June 2021

 

[Ozzy]

but I can guarantee plenty of their suppliers will be out of pocket once they go under.

This is the worse part about all of it , especially smaller suppliers who won't have the cash float to ride a storm like a major client going under.

I have mentioned in the past to be careful extending credit too easily

Absolutely, a friend of mine runs a credit checking co and always bangs the same drum don't give credit away willingly. Get a good deposit if appropriate too.

 

[MBE2017]

This is the worse part about all of it , especially smaller suppliers who won't have the cash float to ride a storm like a major client going under.

No supplier should ever extend so much credit it risks their own companies survival, but we know there are plenty still doing it. One reason I hate credit, one giving it, two, having to chase people every month to get what should be paid anyway.

 

[Ian J]

I don’t know the exact reasons for Made.com demise, but I can guarantee plenty of their suppliers will be out of pocket once they go under.

It's a bit harsh but if they didn't bother to insure significant debtors then it serves them right