The move means 399 staff face immediate redundancy while customers with orders paid for but not received have been left in limbo.

Made.com had warehouses in the UK and Belgium, alongside offices and showrooms in London, Europe and Vietnam.

Like many retailers, Made.com has been heavily impacted by a significant decline in consumer spending from the cost-of-living squeeze, rising import costs and continuing supply chain pressures. Rumours of the brand’s imminent collapse have been circulating for weeks after attempts to find a buyer or refinance the business failed.

PricewaterhouseCoopers (PwC) were appointed joint administrators for Made yesterday and, on appointment, announced the sale of the brand, website and intellectual property of Made to Next Retail Limited for £3.4m.

PwC said: “This transaction represents the best option available to generate returns for creditors as a whole, under severely limited timescales.

“However, the transaction does not include staff. Consequently this will sadly result in 320 redundancies across the business today. In addition 79 employees who had resigned and were working their notice have been released with immediate effect.”

Unsecured creditor claims

According to PwC, close to 4,500 customer orders in the UK and Europe which are already with carriers are being delivered.

However, a large proportion of customer orders are still at origin in the Far East at various stages of production. Due to the impact of the business entering administration, these items cannot be completed and shipped to customers.

These customers will need to submit of claim as a creditor with PwC via Made.com Design Limited (pwc.co.uk)

Made’s customers will be classed as ‘unsecured creditors’ and are unlikely to get all their money back, and possibly nothing at all.

Refunds not guaranteed

Lisa Webb, Which? consumer rights expert, said: “The news that Made.com is entering administration will be devastating for employees, as well as a real concern for customers with orders placed, particularly as exercising your rights is not always straightforward in these circumstances.

“When a company enters administration, it may not accept the return of items. 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. The cost of repairs for faulty items could still be claimed if they came with a warranty.

“If you’ve bought something on your credit card costing more than £100, the card provider is jointly responsible for any breaches of contract. You can claim under Section 75 of the Consumer Credit Act if the item is faulty or not delivered. If you paid for goods that cost less than £100 on a credit or debit card, you may be able to claim under chargeback.”