online furniture company Made.com investigates potential job cuts and a potential sale after the company was plagued by a slump in consumer spending and supply chain disruption.
The company told shareholders on Friday it is conducting a “strategic workforce review” as part of a broader review as it seeks to reduce costs.
It follows reports from the Financial times that the company could lay off up to 35% of its workforce.
Made said the employee count review will take place “within the coming weeks.”
Made.com employs approximately 700 people and has offices in London, ParisBerlin, AmsterdamChina and Vietnam.
The company also said it is considering a formal sale process as part of the wider review and has hired consultants from PwC to assist with the potential process.
Made is not alone in being affected by supply chain and cost of living issues, but we are taking steps to ensure our continued success
It confirmed that it has spoken with potentially interested parties, but has not yet received a formal approach.
“While the group has had a number of strategic discussions with interested parties, at the time of this announcement, the group has not received any approach, nor in talks with a potential bidder,” Made said in a statement.
“The board of directors emphasizes that a sale of the group is only one of a number of strategic options to be considered in the context of the strategic review.
“Another option being considered is to look for a strategic investment in the group.”
The trial comes after a grueling 15 months since Made floated on the London stock exchange.
The group withdrew its trade advice for the current fiscal year, blaming a decline in discretionary consumer spending as a result of rising inflation and weaker consumer confidence.
It said this increased the need to sell discounted products after an inventory build, which hit profit margins.
It also blamed the recent problems on disruptions in its supply chains, leading to “reduced reliability and increased costs”.
Made stressed that freight costs rose from £8.2m in the second half of 2020 to £45.3m in the same period a year later.
Nicola Thompson, chief executive of Made, said: “Made is not alone in being affected by supply chain and cost of living issues, but we are taking steps to ensure our continued success, supported by our strong brand, an excellent product range and a large and loyal customer base in multiple markets.”