18th Aug 2022 09:55
(Alliance News) - Made.com Group PLC on Thursday said it is "considering all options" to bolster its balance sheet, including a share issue.
Shares in the company were 11% lower at 8.80 pence each in London on Thursday morning, giving it a market capitalisation of GBP34.8 million.
In response to press reports, Made said it is "considering all options to allow it to strengthen its balance sheet".
"Made confirms that these options include a potential equity capital raise. Made continues to consider its options and a further announcement will be made if and when appropriate," the London-based sofa seller stated.
Late Wednesday, Sky News reported the furniture retailer has hired professional services firm PricewaterhouseCoopers to help with repairing its balance sheet, including plans for a share sale to raise around GBP50 million.
According to Sky News sources, the furniture retailer is advancing plans to raise funds a month after announcing that it was exploring ways to bolster its financial position.
Sky News reported that the launch of a cash call is expected to take the form of a placing which would require shareholder approval.
The firm could also cut its workforce of 600 people, Sky reported. Its shares have performed poorly as technology-related stocks and consumer-facing companies have been suffering from inflationary pressures.
Made shares debuted in June last year at 200 pence each, valuing it around GBP775 million on admission. Shares are down 95% from its initial public offering price.
By Tom Budszus; [email protected]
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