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Made: Customers in the dark over refunds as firm goes bust | Made: Customers in the dark over refunds as firm goes bust |
(about 2 hours later) | |
Online furniture retailer Made.com has gone into administration, leading to hundreds of job losses and leaving customers in the dark over refunds. | Online furniture retailer Made.com has gone into administration, leading to hundreds of job losses and leaving customers in the dark over refunds. |
The administrators PWC said there will be 399 job losses, most of which are redundancies announced today. | |
79 employees who had resigned and were working their notice have also been let go. | 79 employees who had resigned and were working their notice have also been let go. |
Because of the firm's collapse a large number of orders - about 12,000 for the UK - cannot be completed and delivered. | Because of the firm's collapse a large number of orders - about 12,000 for the UK - cannot be completed and delivered. |
Next is buying Made's brand name, website and intellectual property for £3.4m, although it will not be buying the remaining stock. | Next is buying Made's brand name, website and intellectual property for £3.4m, although it will not be buying the remaining stock. |
It is thought about 74 staff will stay on to help, while it is unclear what the outcome is for some 100 overseas staff employed by Made.com. | It is thought about 74 staff will stay on to help, while it is unclear what the outcome is for some 100 overseas staff employed by Made.com. |
Thousands of customers also face uncertainty over whether they will receive their outstanding furniture orders. | Thousands of customers also face uncertainty over whether they will receive their outstanding furniture orders. |
One customer, Natalie, is awaiting an update from Made.com customer service. | One customer, Natalie, is awaiting an update from Made.com customer service. |
Natalie, 38, from County Antrim, was waiting for a £1,800 refund from Made.com when she received news that the firm had collapsed. | Natalie, 38, from County Antrim, was waiting for a £1,800 refund from Made.com when she received news that the firm had collapsed. |
"I ordered a left-hand version of a sofa. Instead, I received two parts of the wrong sofa, which didn't even fit together!", said Natalie. | "I ordered a left-hand version of a sofa. Instead, I received two parts of the wrong sofa, which didn't even fit together!", said Natalie. |
She has appealed to her lender to ask if they can help and has had to order another sofa in the meantime. | She has appealed to her lender to ask if they can help and has had to order another sofa in the meantime. |
Orders and refunds | Orders and refunds |
Around 4,500 customer orders in the UK and Europe are currently with carriers, on their way to Made.com shoppers. | Around 4,500 customer orders in the UK and Europe are currently with carriers, on their way to Made.com shoppers. |
But about 12,000 orders for the UK cannot be completed and delivered to customers, and they will not get a refund from the firm after its collapse. | But about 12,000 orders for the UK cannot be completed and delivered to customers, and they will not get a refund from the firm after its collapse. |
Lisa Webb, consumer rights expert at Which?, said for customers with outstanding orders, exercising their rights is not always straightforward. | Lisa Webb, consumer rights expert at Which?, said for customers with outstanding orders, exercising their rights is not always straightforward. |
"Many customers could find themselves in a situation where items have not been delivered. It is always worth trying to claim for a refund in this situation, but customers should know it is not guaranteed," she said. | "Many customers could find themselves in a situation where items have not been delivered. It is always worth trying to claim for a refund in this situation, but customers should know it is not guaranteed," she said. |
She pointed out that if customers bought an item costing more than £100 on their credit card, that card provider is jointly responsible. | She pointed out that if customers bought an item costing more than £100 on their credit card, that card provider is jointly responsible. |
In that case, consumers can claim under Section 75 if an item is faulty or not delivered, and if it cost less than £100 and a credit or debit card was used, they might be able to claim the amount back via a chargeback through their bank. | In that case, consumers can claim under Section 75 if an item is faulty or not delivered, and if it cost less than £100 and a credit or debit card was used, they might be able to claim the amount back via a chargeback through their bank. |
Made ex-boss says offer to save company ‘rebuffed’ | Made ex-boss says offer to save company ‘rebuffed’ |
Pandemic furniture star Made.com nears collapse | Pandemic furniture star Made.com nears collapse |
The chief executive of Made, Nicola Thompson, apologised to everyone affected by the business going into administration, adding that the firm had "fought tooth and nail" to avoid this outcome. | The chief executive of Made, Nicola Thompson, apologised to everyone affected by the business going into administration, adding that the firm had "fought tooth and nail" to avoid this outcome. |
She described Made.com as a "much-loved brand" that had thrived in a world of lower prices, stable demand from its customers and reliable supply chains. | She described Made.com as a "much-loved brand" that had thrived in a world of lower prices, stable demand from its customers and reliable supply chains. |
But she continued: "That world vanished, the business could not survive in its current iteration, and we could not pivot fast enough. The brand will now continue under new owners." | But she continued: "That world vanished, the business could not survive in its current iteration, and we could not pivot fast enough. The brand will now continue under new owners." |
It is a dramatic change in fortunes for the brand, which boomed during the pandemic-related lockdowns as people bought more furniture and other products online. | It is a dramatic change in fortunes for the brand, which boomed during the pandemic-related lockdowns as people bought more furniture and other products online. |
The retailer, which sourced furniture directly from designers and manufacturers, gained a loyal base of mostly younger customers. Last year, it was valued at £775m after floating on the London Stock Exchange. | The retailer, which sourced furniture directly from designers and manufacturers, gained a loyal base of mostly younger customers. Last year, it was valued at £775m after floating on the London Stock Exchange. |
But more recently the company hit problems, as households cut back on big-ticket purchases. Global supply chain issues have also left customers waiting months for deliveries. | But more recently the company hit problems, as households cut back on big-ticket purchases. Global supply chain issues have also left customers waiting months for deliveries. |
Made.com had already halted new orders recently and said it is currently not offering refunds or accepting returns from customers, although it is still intending to fulfil some previous orders. | Made.com had already halted new orders recently and said it is currently not offering refunds or accepting returns from customers, although it is still intending to fulfil some previous orders. |
Sarah, 46, from York, told the BBC that she has been waiting for 14 weeks for a sofa bed that has not yet arrived. | Sarah, 46, from York, told the BBC that she has been waiting for 14 weeks for a sofa bed that has not yet arrived. |
After paying £270 and receiving a notification that the item had been shipped, she says she has not heard from the company. | After paying £270 and receiving a notification that the item had been shipped, she says she has not heard from the company. |
Sarah described her "disappointment" about not receiving the product, as well as the fact she heard more about the company's collapse on social media than from Made itself. | Sarah described her "disappointment" about not receiving the product, as well as the fact she heard more about the company's collapse on social media than from Made itself. |
Made.com announced its intention to appoint administrators last week. It had originally hoped to find a buyer for the whole business. | Made.com announced its intention to appoint administrators last week. It had originally hoped to find a buyer for the whole business. |
However, the company's co-founder and former boss wrote in a LinkedIn post that his offer to buy the furniture business was rejected. | However, the company's co-founder and former boss wrote in a LinkedIn post that his offer to buy the furniture business was rejected. |
Ning Li said he had offered to buy Made with his own cash, saving about 100 jobs, but this "wasn't accepted". | Ning Li said he had offered to buy Made with his own cash, saving about 100 jobs, but this "wasn't accepted". |
Do you have an outstanding order with Made? Do you work for the company? Email haveyoursay@bbc.co.uk. | Do you have an outstanding order with Made? Do you work for the company? Email haveyoursay@bbc.co.uk. |
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