Made.com’s unsecured creditors and suppliers get less than 2% of £187 million owed | Retail

Hundreds of furniture suppliers and other unsecured creditors of bankrupt retailer Made.com are expected to receive less than 2% of nearly £187 million they owed when the company collapsed earlier this month.

Creditors include an estimated 12,000 customers who had already paid for items, as well as Thurrock council, which owes £658,000 and Islington council, which owes £110,000, while several furniture suppliers owe more than £100,000.

According to a report from administrators, they get no more than 1.6% of their due money before expenses.

Among Made.com’s biggest unsecured creditors to lose are Facebook (owing £1.4 million), Google (owing about £1.7 million) and the group’s warehouse operator in Antwerp (owing £1.8 million). lb).

However, Made.com’s main lender, Silicon Valley Bank, is likely to get back almost all of the £3.8 million it owes after retailer Next bought the Made.com brand and database for £3.4 million. Workers and HMRC, which owes £3.57 million, will also be paid in full.

Approximately 4,500 items already on their way to customers are expected to be delivered. PricewaterhouseCoopers (PwC) administrators said that if an order has not arrived by November 25, customers should know that it will not come and to submit a claim to them via email at [email protected]

“We know this will seem unfair to many customers who have placed orders in good faith expecting them to be delivered. We recommend that all involved check their debit and credit card purchase protection agreements. We share information with a major trading services provider, enabling them to process refunds,” said a PwC spokesperson.

Administrators said £14.5million of stock had not been sold and was being held in warehouses in the UK and Antwerp, or on its way to the UK. Most of it will be sold through auctioneer John Pye to raise money for creditors.

Made.com’s Trouva site, which sells the brand’s home goods, fashion and accessories, remains active and administrators are seeking a buyer. The sale of the company, which Made bought just four months ago, is expected to close at the end of 2022.

PwC trustees were appointed to Made.com on November 9, completing a turnaround in fortunes for the London-based retailer, which was valued at nearly £800 million when it was listed on the stock exchange in June 2021 and announced as the future of furniture retail. . More than 300 people were laid off when the company went bankrupt and almost all 500 employees are expected to lose their jobs at that point.

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