to cut jobs, explore selling where economic headwinds weigh on performance to cut jobs, explore selling where economic headwinds weigh on performance

By Scott Kanosky – Shares in Group PLC (LON πŸ™‚ fell more than 30% on Friday after the online furniture retailer announced it would cut jobs and begin reviewing a potential sale of the company due to deteriorating market conditions.

The British group said in a statement that it would begin a “staff review” within the next few weeks in an effort to cut costs amid slowing trade. According to an internal email cited by the Financial Times, about 35% of the workforce may be laid off, and those affected by the cuts are set to leave by the end of October.

Meanwhile, Made has given up on the prospect of going into the public stock markets to raise emergency funds. It cited economic headwinds for the decision, including an inflation-driven slowdown in consumer spending and an increase in shipping costs caused by recent supply chain restrictions.

Instead, Made has entered early talks with the company’s potential buyers, though it has yet to receive any formal approaches. She added that MEED may consider raising additional funds through debt financing or a “strategic investment” from another company.

It previously used the Β£90m it raised from its initial public offering in 2021 to increase its inventory levels to meet rising demand for household goods during the pandemic. But performance has been hit hard by recent broader trends in the global economy, leading the company to issue three profit warnings in 2022 alone.

β€œMade’s core markets experienced adverse developments in macroeconomic conditions, including an economic slowdown, higher commodity and energy price inflation, as a result of the Russian invasion of Ukraine, causing further uncertainty over the duration and further deterioration of these adverse conditions and other contributing factors,” He Said.

READ ALSO :   Firefly the rocket builder achieves a milestone with the success of the first mission

Maid’s shares are down more than 97% from their initial public offering price of 200 pence.

Newsletter Updates

Enter your email address below to subscribe to our newsletter