January 11, 2023, 11:24 am | Read time: 3 minutes
The online store Made.com was primarily known for its curated, design-oriented furniture and accessories. After filing for bankruptcy last year, there is now more bad news for customers: Many are not getting their money back.
Fans of timeless and classic furniture design were disappointed: The furniture online store Made.com had to file for bankruptcy at the end of 2022. Now there is even more bad news for many customers: Thousands are left empty-handed–receiving neither their money back nor their orders. Nevertheless, it should soon be possible to buy products from Made.com again.
What Customers Need to Know Now
The insolvency administrators had already announced it in November 2022, and now it is becoming a reality: Thousands of orders will not be delivered despite payment. Customers had already been facing delivery times of several months due to the COVID-19 pandemic. In total, around 30,000 customers are affected, not receiving refunds for their ordered but undelivered furniture, reports the Guardian. The total damage amounts to approximately 13.5 million euros.
The report further states that Made.com’s financial resources are insufficient to make the necessary refunds. However, approximately 2.1 million euros were refunded to customers through credit card chargebacks.
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Fashion Group Buys Made.com Out of Bankruptcy
The British fashion group Next is primarily known for affordable fashion for women, men, and children. However, furniture and decor are now also offered–with the acquisition of Made.com, the company is expanding its home offerings. The amount for which the furniture online store was purchased out of bankruptcy is not known.
It was only announced that the insolvency administrators have initiated the sale of the brand, website, and intellectual property of Made.com to Next. This transaction is the best possible option to quickly generate returns for creditors.
According to the insolvency administrators, Made.com employees will not be retained–the purchase by Next does not include the staff. More than 300 were laid off, and nearly 80 who had already resigned were released.
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Made.com to Be Continued
What the fashion group Next planned after purchasing Made.com was unclear for a while–until now. Because now, when searching for Made.com, you are directed to the Next website. It states: “Made.com has ceased operations but will be continued by Next next year. In the meantime, you can still shop home trends at Next.” However, it is unclear whether “next year” refers to 2024 or already 2023.
Why Made.com Filed for Bankruptcy
The reason for the bankruptcy is stated as economic problems. On the website of the insolvency administrator, it says that retailers, especially those with high-priced products, are significantly affected by a substantial decline in consumer spending. Rising import costs and ongoing supply chain pressures are also cited as reasons.
Just last year, the furniture online store Made.com went public. At that time, the company was valued at 775 million pounds (891 million euros). Most recently, according to “Textilwirtschaft”, it was only worth around 2.1 million pounds before trading of the shares was suspended.