E Point Perfect

Made.com calls in advisers to shore up balance sheet

Made.com balance sheet
Made.com has seen its share value plunge over the past year.
// Made.com has hired PwC to help restructure company
// Online furniture retailer has seen share value plunge amid challenging trading conditions

Online furniture retailer Made.com has called in advisers to help shore up its balance sheet as it considers a share sale to raise around £50m.

Sky News reported that the London-listed company has hired PwC to evaluate cost-cutting and other restructuring options.

Made.com is also planning to raise equity almost a month after confirming that it was exploring ways to strengthen its financial position amid tough trading conditions.

While the launch of a cash call is not thought to be imminent, it is likely to take the form of a placing that would require shareholder approval.

READ MORE: Made.com warns on profits as consumer confidence drops

Successfully launching a share sale to raise in the region of £50m could be challenging for Made.com given that its shares have plunged by almost 95% over the past year, leaving it with a market capitalisation of just £38m.

Last month, the furniture retailer saw its shares sink further after it issued a warning that sales and profit for the year would be well below expectations.

Job cuts from its workforce of about 600 people are increasingly likely in the short term.

Made.com was established by Brent Hoberman, the Lastminute.com co-founder, and Ning Li, a Chinese entrepreneur, and went public in London last year with a valuation of £775m.

However, a crash in technology-related stocks and the impact of the cost of living crisis on big ticket furniture items has seen that value in freefall.

Made.com said: “As indicated in the Q2 trading update, Made is considering all options to allow it to strengthen its balance sheet.

“Made confirms that these options include a potential equity capital raise. Made continues to consider its options and a further announcement will be made if and when appropriate.”

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