SHARES in struggling homeware retailer Made surged by more than 20 per cent following a raft of takeover proposals.
The online business said it invited a “select number of parties” to develop firm offers for the company by the end of the month, after receiving a “number of non-binding indicative proposals”.
The company announced plans to seek a potential sale last month after it was battered by a slump in consumer spending as well as supply chain disruption.
It comes as another online giant, Asos, responded to speculation by confirming it is in final stages of agreeing an amendment to future financial covenants on its revolving credit facility, stating that this would significantly increase its financial flexibility “against the uncertain economic backdrop.”
Asos shares dropped more than 10% in early trading.
Made said in September that it would also carry out a "strategic headcount review" as part of a broader review as it seeks to slash costs.
More recently, it said that up to £70 million in funding will be needed over the next 18 months to secure the future of the company.
On Monday, the business said it has now received proposals from potential suitors and has invited the select number of parties to progress to firm offers by the end of the month.
READ MORE: Fashion giant Asos warns on profits
Made told investors that the proposals include a raft of potential structures.
It added that interim financing will be needed at the time any firm offer is agreed.
Made said that "based on the working capital requirements of the group, any firm offer would require interim financing to be put in place at the time that firm offers are expected".
It represents a sharp change in fortunes for Made, which only floated on the London Stock Exchange last January with a £775m valuation.
Despite its shares rising by around a third on Monday morning, its market value sat at around £34m, representing a colossal slump.
It comes amid a tough time for online retailers which have seen sales slip amid the return of shoppers to high streets after the pandemic and intensifying pressure on household budgets.
Asos shares slumped after the fashion retailer confirmed it is talks with lenders over changing the terms of the £350m borrowing facility.
The online retail firm told shareholders it is "in the final stages" of agreeing to an amendment to its financial covenants for its revolving credit facility.
Asos said the move will give it "increased financial flexibility" amid an uncertain economic backdrop.
The company added: "Asos retains a strong liquidity position and this is a prudent step in the current environment."
Lenders have reportedly lined up specialists from AlixPartners and law firm Clifford Chance to advise them over the process. It comes two days before the e-commerce firm is set to reveal its trading figures for the past year to August.
Last month, Asos said that profitability would be towards to bottom of targets after sales fell below expectations in August amid clear signs customers were tightening their belts.
The latest fall in Asos' stock means the company has seen its share value fall by almost 80%, or around £1.8bn, since the start of the year.
Asos shares closed at 518p, down 2.54%, or 13.5p. Made shares closed at 7.84p, up 10.42%, or 0.74p.
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