has joined the latest list of the companies struggling amid decreased consumer demand and higher costs. Therefore, the online furniture firm has conducted a headcount review and is planning to shed one third of the existing headcount. Moreover, the company is also eying a potential sale due to slump in consumer spending.

More than 200 employees will be laid off

Previously, the company warned the employees of potential job cuts in July. The company had a tremendous run during the pandemic times and their sales rocketed. Hence, the revenues also multiplied. Interestingly, employed 673 staff on average last year with 320 new hires in marketing and products. Similarly, the company hired 290 people in administration roles. However, the company initiated a hiring freeze at the start of the year when their sales started to decline. In addition, the company is now planning to cut at least 200 employees by the end of the year. This constitutes to around 35% of the company’s active workforce which is a significant number.

Company is reviewing sale options

Moreover, is also reviewing options including a formal sale process and strategic investments. Therefore, they have appointed PricewaterhouseCoopers (PwC) as its financial adviser to the strategic review and formal sale process. “While the group has had a number of strategic discussions with interested parties, the group is not in receipt of any approaches, nor in discussions with any potential offeror, at the time of this announcement.” said in a statement. Despite speaking to multiple interested parties, the company has confirmed that they have not yet received any formal approaches.

Slump in share price first floated on the London Stock Exchange some 15 months ago. Surprisingly, the company’s shares have tumbled 30% to 3.6 pence. In addition, the online furniture company has lost more than 98% of their value since their initial public offering (IPO). The initial public offering price was 200 pence per share at the time of launch.

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