Made.com enters into sales discussions, seeks interim financing

Made.com, the owner of fashion marketplace Trouva, has announced that it has “received a number of non-binding indicative proposals”, taking it into the next step of its formal sales process.

It launched the process, which is being advised by J.P. Morgan, in late September, months after the furniture e-commerce platform announced its intention to acquire London-based Trouva.

Now, the company has said it will be inviting a select number of parties to progress towards firm offers by the end of October, following a due diligence process.

In its regulatory filing, Made.com said the proposals came in a range of transaction structures, including possible offers for the company’s issued and to be issued share capital.

It noted that any firm offer would require interim financing to be put in place when an offer is expected.

In a stock exchange release following the announcement of its sales process, Made.com cited a number of macroeconomic conditions over the past 15 months that had led to its decision.

These notably included a decline in discretionary consumer spending, which had impacted Made’s core markets and ultimately put the firm in an overstocked position, with more cash tied up in working capital.