Made.com
The British online furniture brand fell from GBP 775 million to a GBP 3.4 million sale in 17 months
- Founded
- 2010
- Closed
- 2022
- Lifespan
- 12 years
- Peak valuation
- $1.1 billion
- Became a unicorn
- 2021
- Country
- United Kingdom
- City
- London
- Sector
- E-commerce
- Founders
- Ning Li, Brent Hoberman, Julien Callède, Chloe Macintosh
- Investors
- Partech, Eight Roads Ventures
- At its peak
- London listing in June 2021 at a value of GBP 775 million
- Cause of closure
- Ran out of cash
What did it do?
Made.com was founded in London in March 2010 by Ning Li, Brent Hoberman, Julien Callède and Chloe Macintosh. It was an online furniture brand connecting designers and Far East manufacturers directly with shoppers. In 2020 gross sales reached GBP 165 million in the UK and GBP 150 million in continental Europe. It listed in London in June 2021.
Why did it shut down?
The June 2021 listing priced at the bottom of its range and valued the company at GBP 775 million, against early talk of GBP 1 billion. Warehouses were filled against supply disruption, and by the end of June 2022 it owed suppliers and warehouse owners at least GBP 75 million. In October 2022 the company said it needed GBP 45 million to GBP 70 million of new cash, put itself up for sale and stopped taking orders. Its shares were suspended on 1 November 2022. PwC was appointed administrator on 8 November 2022, and the next day Next bought the brand, domains and intellectual property for GBP 3.4 million. PwC said 320 staff were made redundant, and 79 on notice left as well.
The story
Made.com's promise was simple: no shops, no middlemen, designer furniture straight from the maker to your home. Started in 2010 by Lastminute.com co-founder Brent Hoberman and Ning Li, the company became a favourite of Britons spending on their homes during the pandemic. In 2020 it made GBP 165 million of gross sales in the UK alone.
In June 2021 the target was a GBP 1 billion listing. The result was duller: the shares priced at the bottom of the range and the company was valued at GBP 775 million.
Then the wind turned. Freight grew dearer, warehouses were filled for fear of shortages, and consumers cut back. By the end of June 2022 it owed suppliers and warehouse owners at least GBP 75 million. In October 2022 management sought GBP 45 million to GBP 70 million of emergency cash and did not find it. A rescue offer from founder Ning Li was turned down.
On 9 November 2022 Next bought the brand and domains for GBP 3.4 million. The company itself was broken up in administration. Next relaunched the Made.com site in August 2023.
Lessons for founders
- A listing brings money, but it also brings a price that the market sets daily. When value fell from GBP 775 million to around GBP 2 million, the stock market was no rescuer.
- A stock buffer locks up cash. If you fill warehouses against a supply crisis and demand then drops, those goods are not safety; they are money you owe your suppliers.
- If your model has long delivery times, do not treat customers' prepayments as savings. Nearly 4,500 orders left in limbo is the moment a brand's reputation ends with the administrators.
Sources
- Next buys Made.com for just £3.4m a year after it was valued at £775m (Yahoo Finance UK, 2022-11-09)
- Made.com enters administration with loss of 399 jobs as Next buys brand (Retail Gazette, 2022-11-09)
- Made.com wants to raise $141 million in London IPO (CNBC, 2021-05-25)
- Made.com (Wikipedia, 2026-11-02)
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