Hundreds of furniture suppliers and other unsecured creditors to bankrupt retailer Made.com are set to receive less than 2% of the nearly £187million owed to them when the business collapsed earlier this month .
Creditors include around 12,000 customers who had already paid for items, as well as Thurrock Council, which owes £658,000 and Islington Council, which owes £110,000, while several furniture suppliers owe well over £100 £000.
They will get no more than 1.6% of the money owed to them before expenses, according to a report from the administrators.
Among Made.com’s biggest unsecured creditors who will lose out are Facebook (owed £1.4m), Google (owed around £1.7m) and the group’s warehouse operator in Antwerp ( £1.8m).
However, Made.com’s main lender, Silicon Valley Bank, is likely to recover almost all of the £3.8m owed to it after retailer Next bought the Made brand and database. com for £3.4 million. Employees and HMRC, who owe £3.57million, will also be paid in full.
Approximately 4,500 items already on their way to customers are expected to be delivered. Administrators said that if an order hasn’t arrived by Nov. 25, customers should know it won’t come and they should submit a complaint to them.
Administrators said £14.5million of stock had not been sold and was being held in warehouses in the UK and Antwerp, or in transit to the UK. Most of it will be sold through auctioneers John Pye to raise money for creditors.
Made.com’s Trouva site, which sells brand-name homewares, fashion and accessories, continues to trade and administrators are looking for a buyer. The sale of the business, which Made bought just four months ago, is expected to close by the end of 2022.
PwC directors were appointed at Made.com on November 9, completing a reversal of fortunes for the London-based retailer, which was valued at almost £800million when it went public in June 2021 and announced as the future of furniture retail. . More than 300 people were made redundant when the company went into administration and almost all of the 500 employees at the time are expected to lose their jobs.