According to the Sunday Times, PwC was consulting Made on securing a rescue deal in the coming days, as the company kept new orders suspended less than 18 months after its blockbuster £775m market float.
The newspaper said the likely outcome would be a ‘pre-pack administration’ that would see the Made brand kept, but up to 500 jobs lost and creditors left millions of pounds out of pocket.
Customers were also likely to be left having paid and without any furniture, unless they were protected through their credit card provider.
Shares in Made were suspended from trading before markets opened on 1 November, after the company confirmed its intention to call in administrators.
The company announced a strategic review on 23 September, including the possibility of a formal sale, although none of the interested parties were able to meet the required timetable.
“As a consequence, the board of Made.com Design (MDL), Made’s operating subsidiary, considered appropriate next steps,” the board said at the time.
“In light of MDL's requirement for further funding and in order to preserve value for its creditors, the board of MDL took the decision on 26 October to temporarily suspend new customer orders.
“The board currently expects that, in due course, the listing of the company's ordinary shares will be cancelled, any residual value will be distributed to the company's shareholders and the company will be wound up.”
At 0910 GMT, shares in Next were up 0.9% at 5,174p, and those in Frasers Group were ahead 4.34% at 696.5p.
Reporting by Josh White for Sharecast.com.
