Made.com Group PLC (LSE:MADE) is putting itself up for sale as part of a review of possible options to “maximise value for shareholders”, as it has been unable to attract investors to an equity fundraising.
The struggling online furniture retailer, which floated last year and has seen its shares almost wiped out since, said “unexpected events” this month in the UK have seen trading and its financial position both deteriorate further.
Due to the continued uncertainty, directors have withdrawn full-year financial guidance.
The shares, already down over 90% since listing at 200p in June 2021, tumbled another 36% to 3.65p in early trade on Friday.
Made said prevailing stock market conditions were “not supportive at the current time” to enable it to raise sufficient cash from a planned equity fundraise, which has led to the decision to carry out a strategic review.
This will involve looking at potential debt financing, strategic investment or a sale of the group, it said.
The chain of bad news this year began when long-time chief executive Philippe Chainieux stepped down in February, citing family reasons, a month before the group announced wider full-year losses and warned of softness in consumer demand, which was followed by further profit warnings in subsequent months, as it noted that consumers were less willing to buy big ticket items.
In July, it cited volatile trading and worsening consumer confidence, as well as hinting a fundraising could be on the cards, a fact confirmed last month after it reported that it was seeking to raise up to £50mln.