The economic conditions and cost of living crisis has claimed a notable scalp in Made.com who today entered administration, only for Next to step in and buy the assets and IP for £3.4m.
As Warren Buffet said, “it’s only when the tide goes out that you learn who has been swimming naked.”
This is unfortunately true of Made.com. The company were racking up losses as orders fell and payables mounted. An attempt to find a buyer for the business failed and the company was forced to suspend shares and call in the administrators.
Next had been widely expected to buy Made.com and have executed a deft swoop on the assets.
“The deal shows that there was nothing wrong with the proposition as such, just the way the business was run,” said AJ Bell investment director Russ Mould.
“As Made.com CEO Nicola Thompson observed in a candid statement that the company could not survive in a world where there wasn’t stable demand, low inflation, and a cost-efficient global supply chain.”
“Next has the scale, experience and retail savvy to adapt to changing economic circumstances and it has done so successfully in the past, suggesting it can turn Made.com into a successful and lucrative brand.”