co-founder’s ‘final’ bailout bid fails, paving way for online furniture retailer to collapse | Economic news

0 co-founder and former chief executive Ning Li told staff that his “final” attempt to save the company from collapse had been rejected, paving the way for its collapse.

In an open letter on his LinkedIn page, Mr Li said he made three offers to save the online furniture brand, which would have included keeping “at least 100 jobs”.

Actions were suspended and 700 roles put at risk six days ago when it was revealed that Made’s operating arm, Design (MDL), had submitted a review to appoint PricewaterhouseCoopers (PwC) as administrators after bailout talks failed.

It is expected to go into administration later this week, with the brand being sold to a new owner.

The company became a stock market darling during the COVID pandemic as sales soared, but has struggled since with supply chain headwinds damaging its order book.

Hundreds of jobs should be cut.

Mr Li said he had invested his own money to finance his proposals because potential investors had been “scared off” by Made’s fate.

“My plan would be to simplify our product offerings, streamline operations and run a smaller but profitable business.

“My plan was for the council to keep at least 100 jobs (and more, if I could), keep our offices open, and fulfill all orders from undelivered customers.

“It felt like the right thing to do, although I have no idea if other bidders care about saving jobs and reimbursing customers.

“Unfortunately my proposal was not accepted. Apparently it would be better to split the business and sell it into pieces to generate some more money. It makes no sense to me. But I wanted you know i really tried,” he wrote.

Mr Li, who co-founded Made 12 years ago, led the company as chief executive until he stepped down in 2017.


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