Online furniture retailer Made.com will not take any new orders from customers after attempts to secure a bail-out fell flat.
Bosses said they have decided to “temporarily suspend new customer orders” to preserve value for the company’s creditors.
“This decision remains under review and a further announcement will be made as appropriate,” Made said in a statement to shareholders on Wednesday.
Just a day earlier, the company’s share price plummeted when it revealed that rescue talks had failed.
It said on Tuesday: “Following further discussion, those parties have all now confirmed to the company that they are unable to meet the necessary timetable.
“As a result, those discussions have been terminated and the company is no longer in receipt of funding proposals or possible offers for the issued and to be issued share capital of the company.”
Shares dropped 93% on the day, and are now down 99.7% compared with where they were a year ago.
The retailer said insolvency is on the cards if another company or investor does not come to its rescue soon.
As late as last week there still appeared to be hope for the under-pressure business as a number of takeover approaches had been submitted to the board.
Made.com has been under pressure as customers tighten their belts during the cost of living crisis. It was also hit by problems in global supply chains.
It has recently warned that it needs to secure £70m in funding over the next 18 months to stay afloat. The business is also considering heavy staff cuts.
Two years ago, Made was worth £775m when it floated on the London Stock Exchange for the first time. Today the business is worth £2m.