British online furniture retailer Made.com says it will appoint administrators after running out of cash.
Made.com now becomes one of the first retailers to fail as a result of the squeeze on household budgets across the UK this year.
The group says it intends to appoint administrators after talks to find a buyer failed. It had already suspended customer orders last week.
The online retailer grew during the pandemic when shoppers stuck at home in lockdowns spent money on sofas, coffee tables, lamps and the other items it sold.
But its troubles began when people started returning to their workplaces and cut back on discretionary spending, hitting sales hard.
Made.com’s rapid decline – it floated less than 18 months ago with a value of 775 million pounds ($894 million) – is a warning for retailers across Britain.
End of free spending
It comes as consumers cut back on discretionary spend in the face of rising energy bills, mortgage rates and food prices.
The company’s demise is likely to lead to job losses for its staff of more than 500 people, most of whom are based in London, as well as hit suppliers who are owed money.
It also adds to the pressure on high streets, which have been struggling for years with the growth of online retailing. Retailers have faced further challenges this year from government restrictions designed to stop the spread of COVID-19 infections.
Made.com is just one of the many retailers feeling the squeeze as consumer spending slows down.
The pandemic forced people to stay home and led to an increase in online shopping, but as people start returning to work, they are cutting back on discretionary spending.
