Eve Sleep hunting for new owner as mattress giant is in need of fresh cash

Online mattress seller Eve Sleep said this morning it is hunting for a new owner after telling shareholders it needs new investment to expand.

The company said it is looking for a new owner or at least a major investor to help fund the push into the “wider sleep wellness space”.

Eve had been speaking to a US investor interested in making a bid for the firm but these talks came to nothing, it revealed.

The London-listed firm saw its share price crash more than 25 per cent on Monday.

The mattress seller said it was “exposed to ongoing weaknesses in the economy, declining consumer confidence and rising inflation,” in a trading update.

It warned that it does not now expect to meet previous revenue expectations for the current year, based on the first five months of trading and an “expectation that the cost of living crisis is set to continue for some time.”

The company’s CEO Cheryl Calverley, said that in order to fully achieve its “long term potential”, especially against a backdrop of “weakening consumer confidence”, there was a need for additional investment.  

“Recent inbound investor interest has led the board to conclude that the optimum way to build shareholder value and realise the opportunity in sleep wellness is to launch a strategic review to secure either a new owner or a major strategic investment partner,” Calverley added.

Eve said it would conduct a “targeted process,” looking only at parties who “understand and value the full potential” of the retailer.