British homeware retailer Made.com has announced it will be undergoing a formal sale process as its board of directors decided to withdraw its full-year guidance.
The news comes just months after the e-commerce platform announced its intention to acquire London-based fashion marketplace Trouva.
According to a stock exchange release, a number of macroeconomic conditions over the past 15 months, since Made implemented an IPO, have caused major headwinds for its consumer business.
A decline in discretionary consumer spending, which has particularly impacted Made’s core markets and has been caused by adverse market conditions, has put the retailer in an overstocked position, it said in a release, with more cash tied up in working capital.
Additionally, Made said the destabilisation of supply chains has resulted in reduced reliability and increased costs, with it further stating that it had seen a cost inflation in its supply chain that had persisted throughout the first half of 2022.
In light of these factors, its board has decided to undertake a strategic review looking into possible solutions to raise additional funding.
One of its options is to consider a potential sale of the group, a process that will be overseen and advised by J.P. Morgan.
In its release, the company did note that it had already held a number of strategic discussions with interested parties, however it has not yet proceeded with a potential offer as of publishing.