Member Info for WarrenBJunior

Have you seen Made.com ouch !
There is just no money out there , I have decided to get out as its just too risky!
GLA

290 of their 693 employees are in administration which would be a considerable saving for any company buying them . While I appreciate its a difficult decision to make it shows how lucrative this company could be to an existing player .
I am still convinced this will go to a European player .

Then again the state John Lewis are in ex Director Patrick Lewis might encourage them to purchase Made to divert from its problems on the High Street .
The more you look at the whole picture , we could be looking at a bidding war which might drive the price higher than we realised.
GLA is

Here’s a thought Nicola use to work at ASOS, with all their problems with fashion sales under pressure they could supercharge their turnover by adding furniture to their business. They have the money and there would be substantial cost savings in operating the business using their existing people . Wonder if Nicola is working towards this , who is being made redundant at Made by the end of October, anyone they don’t require. She would know the business inside out and ASOS could purchase a great readymade business.

I am right behind you Clintek , while there is absolutely no guarantee of an offer the odds are fairly high with multiple parties interested in making some kind of offer . Yes the mention of odds makes it sound like betting rather than investing but let’s face it investing is all a bit of a gamble . The main positive for me along with a great brand and millions of customers is no debt and pension liabilities which in this climate is a potential death sentence for any company . I have just got out of Joules as along with its debt I was very concerned with its onerous leases on their 200 shops , from experience the only way of which is some sort of administration.
GLA and here’s hoping for a weekend press leak along with a story that Boris is coming back !!!!

Well it’s now countdown to an announcement before the end of the month .
It will either be a cash injection or an outright takeover of the company.
Hopefully the weekend press will get a whiff of the potential winner so we won’t have to wait till the end of next week.
GLA ! Hoping for 25p plus but would be happy with anything above 18p .

£6 million profit for a company valued at £12 million would not be a bad result !

I am convinced this will go to a large European player for £100 million plus , great opportunity for any company to buy an internet presence on the cheap , the cheap pound might have attracted a big US player ! Amazon !!

25p to 50p is the potential range ,

Another excellent post , the cost of setting up the infrastructure to get to where made are now would be 100’s of millions of pounds . An existing business who has no online presence gets to buy one at a fraction of the price with no existing liabilities or more importantly dept . Joules for example is sitting on £20 million plus of debt and Carlo another company has a huge pension deficit. Made is a company which requires a substantial capital investment but to an existing company who requires an online presence it is a hell of a lot cheaper that setting up from scratch. Many companies have spent millions doing just that and are still loosing money.

Exactly someone who talks perfect sense, fireworks next week.

Made are an absolutely perfect fit for this company , in I am now convinced this is going to be bought by a European player . Half its sales are in Europe and that is where the future growth will come from.
My bet is 50p take out price after a fierce bidding war.

Well we are now mid October so hopefully we should get an update any day now , something might leak out in the weekend press which will set us up for a surge Monday !

This should happen fairly quickly as whoever buys this is getting it for a song , it’s not just the brand but the infrastructure they will be getting. The cost of building warehouses and setting up a distribution network have risen considerably .
Add to this half the company’s sales are outside the uk so it will be of interest to European companies.
As far as the takeout price it might surprise us , 50p a share is not excessive for a company that has over 1 million customers.

Unilever who are having a fairly tough time at the moment must be tempted in another offer for Haleon.

With the fall in the pound their original offer could be raised and they would still save money .

I feel this has been a huge overreaction to the Next news and I certainly will be investing at this price .
The valuation is sitting at £12 million which is ridiculous for such a strong brand , their new head office of which they own the freehold must be worth at least £20 million and the garden trading business which I believe they paid £12/15 million for will have a substantial value . They now have an excellent CE in place with a great track record for turning businesses around and the founder is back to add to the mix . Finance is an issue which needs sorting but this is a business with a lot of fat , their cost base is huge so while I appreciate it’s never easy to let staff go there is plenty of fat that can be trimmed. Correct me if I am wrong but in last years results their total administration cost was about £98 million , a 10 % cut would put the business straight back in the black.

New CEO !

Next might even make an offer , this is a great opportunity to buy a strong brand at an incredibly cheap price .
You can soon get profitability back on track by cutting costs , it’s much easier when times are tough to cut costs .

Bid from Mike Ashley potentially on the way !

18p ?

Another 15% off everything on their website even sale stock ,they must be desperate for cash !

The good news is there is absolutely no chance they will not accept Next’s offer of cash .