Furniture Retailer’s Administration Leads to Job Losses and Asset Sale
- Next acquires Made.com brand for £3.4m after its collapse into administration
- Up to 500 jobs at risk as Next takes over Made.com’s assets
- MDL appoints PwC administrators Zelf Hussain, Peter David Dickens and Rachael Maria Wilkinson
- Next Retail Limited buys brand, domain names, and intellectual property of MDL
- Transaction does not include staff, resulting in 320 redundancies and 79 immediate releases
Next has acquired the Made.com brand for £3.4m following the furniture retailer’s collapse into administration, which may see the loss of up to 500 jobs. MDL, Made’s operating subsidiary, appointed Zelf Hussain, Peter David Dickens and Rachael Maria Wilkinson of PwC as administrators of the group. The administrators will sell off the estate’s remaining assets in due course, making payments to its creditors. Made.com had previously announced a strategic review of the business, including a formal sale process to sell the company. However, discussions with interested parties were terminated as they failed to meet the deadline for the end of October. The board also temporarily suspended new customer orders on 26 October in light of MDL’s requirement for further funding and to preserve value for its creditors.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Made.com’s acquisition by Next Retail Limited, the appointment of administrators, and the resulting job losses. It also mentions the suspension of shares trading on the London Stock Exchange and previous attempts to find a solution for the company. The article is mostly factual with some quotes from relevant parties.
Noise Level: 3
Noise Justification: The article provides relevant information about the acquisition of Made.com by Next and the consequences for employees, but it could benefit from more analysis or context on the reasons behind Made.com’s collapse and potential lessons for other businesses.
Financial Relevance: Yes
Financial Markets Impacted: Made.com’s collapse into administration affects the furniture retail industry, impacting shareholders, employees, and suppliers.
Financial Rating Justification: The article discusses the acquisition of Made.com’s brand by Next Retail Limited after its collapse into administration, which has financial implications for the company, its stakeholders, and the furniture retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The situation involves a furniture retailer’s collapse and potential job losses, but it does not meet the criteria for an extreme event as defined by the given categories.
www.retailsector.co.uk