ICSM Business News: the reasons why so many firms are collapsing as Made.com is the latest big name to go into administration

By Harry Mottram: Online retailer Made.com has called in administrators from accounting firm Pricewaterhouse Coopers after days of speculation over profit warnings and a collapse in the Shoreditch based firm’s share price plus a failure to secure £70 million pounds to secure its future. Earlier this year the firm predicted a small profit but now the collapsed company is laying off its 700 staff, stopped taking orders and faces a £35 million pound debt mountain.

Whether the administrators can find a buyer is open to speculation as the home furnishing market has been hit by the Cost of Living Crisis as customers cut back on spending. Eve Sleep of Camden who make mattresses went bust last month owing the taxman £400,000, along with Complete Carpets Limited, Furniture Loft Limited and Optimal Furniture Limited.

The reasons also include servicing debt as with a hike in interest rates and double digit inflation the repayments to lenders become impossible to pay.

Other factors for the online firms include distribution with a shortage of drivers and logistic firms willing to take on work from firms in trouble due the fear of not getting paid compounds the problem.

For the high street retailers and out of town stores there is the continued problem of business rates stifling profits and preventing growth and their landlords in some cases increasing the cost of leasing.

During the Covid Pandemic online shopping became big business spurring the rapid growth of Made.com, but with a return to work customers can visit high street retailers again. Being able to take home your chosen chair or bedside table rather than wait months for it having paid up front.

+++++++++++++++++++++++++++++++++++

ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk