Shares of British online furniture retailer Made.com Group PLC rose on Monday after it narrowed down potential buyers for the company amid declining sales.
The stock of the London-based e-commerce firm was trading 19.7% higher. However, its shares have dropped almost 95% in the past one-year period.
Saving Made’s Struggling Business
Made stated that its board had provided the chosen parties interested in acquiring the group until the end of this month to put forward their firm bids.
The firm selected the offers from an unspecified list of early non-binding indicative takeover proposals.
Made decided to put itself up for sale in September after it underperformed, as higher inflation weakened consumer spending on homeware items amid a cost-of-living crisis.
In the six months to June 30, the company’s losses before tax reached £35.3 million, higher than the £10.1 million loss it posted in the previous year.
Still, Made said it remains uncertain whether an offer will be made or what conditions for any bid would be, as current discussions could undergo change or be called off at any time.
Faced with a slump, Made declared several profit warnings this year and found it difficult to secure the funds necessary to continue operating. The group raised £90 million from its initial public offering (IPO) in 2021.
Made previously announced cost-cutting plans that include laying off employees in the next few weeks, although it was not immediately clear how many will be affected by the move.
Made did not name the companies that had presented their offers. However, according to the British retailer, the proposals provided various transaction structures, including potential bids for “issued” and “to be issued” share capital in the group.
Made has also reminded potential acquisitors that it would need aggregate funding of £45 million to £70 million to operate as a stand-alone public company within the next 18 months.
Any firm bid would require interim financing at the time that firm bids are expected, Made stated.