Furniture firm Made.com confirmed it is mulling a capital raise to shore up its balance sheet today as it grapples with a plummeting share price and soaring costs.
The troubled retailer has shed more than 94 per cent of its value in the past year and it was reported yesterday that it was considering a share sale to raise around £50m.
Bosses have also called in advisors at PwC to explore cost-cutting and restructuring plans as they fight to turnaround its fortunes.
In a statement today in response to the reports, the firm said it was “considering all options to allow it to strengthen its balance sheet.”
“MADE confirms that these options include a potential equity capital raise. MADE continues to consider its options and a further announcement will be made if and when appropriate,” it added.
The emergency cash raise measures come just one month after the retailer issued a profit warning and slashed its sales and earnings outlook for this year, blaming soaring costs in its supply chains and low consumer confidence.
Bosses forecast a core loss of £50m to £70m, versus previous expectations of a loss of £15m to £35m.