By Scott Kanowsky
Investing.com — Shares in Made.com Group PLC (LON:) fell more than 30% on Friday after the online furniture retailer announced it will cut jobs and launch an assessment of a possible sale of the company due to the deteriorating market condition.
In a statement, the British group said it will begin a “workforce review” in the coming weeks in a bid to cut costs as trade stagnates. According to an internal email quoted by the Financial Times, about 35% of the workforce could be laid off, with those affected by the cuts set to leave by the end of October.
Meanwhile, Made has refrained from possibly going to public stock markets to raise emergency money. It called “predominant” economic headwinds for the decision, including an inflation-driven slowdown in consumer spending and a rise in freight costs due to recent supply chain restrictions.
Instead, Made has entered into early talks with potential buyers of the company, although it has not yet received a formal approach. Made may also consider raising additional money through debt financing or a “strategic investment” from another company, it added.