‘Heartbreaking’: Eve Sleep calls in administrators after unsuccessful sales talks
Mattress seller Eve Sleep has been forced to call in administrators after bosses said the scale of the company had struggled to withstand an “economic tsunami” this year.
The AIM-listed sleep wellness brand had been searching for a buyer or equity fundraising but said talks had not been successful.
Shoppers had shunned big ticket items and homeware goods amid pressure on household budgets, the firm has said.
In an update on Monday afternoon, Eve confirmed its brand and intellectual property will be sold to Bensons for Beds, who will be taking over the brand and its website immediately.
CEO Cheryl Calverley said Eve had “moved heaven and earth to seek a way forward” as independent or acquired company but “ultimately prevailing market conditions just do not support that”.
While there had been “monumental efforts” to turn the firm’s fortunes around, the scale of Eve “was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months, and allow it to continue as an independent business,” she added.
The CEO said the year had started “so brightly” as efforts to rebuild the business into one fit for profitable growth were “coming to fruition,” before an “unprecedented downturn in the market” over February and March.
The company’s collapse means the loss of around 20 jobs in the UK, plus a couple of other roles elsewhere.
In a statement on the London Stock Exchange, Eve said the likely outcome to creditors was “currently unknown”.
Administrators at Kroll Advisory have been appointed, while the company’s AIM shares being suspended from the market from Monday morning.
Sales in the UK had dipped 18 per cent compared to the previous year while gross profit had plunged by a third, interim results last month revealed.
Although big cost savings had been achieved, more cash would be required in October with cash reserves set to be fully drained by the autumn, bosses had warned.
While the company was a “well-established brand with huge visibility across the UK,” it had grappled with “a challenging market backdrop over the past year,” Matt Ingram, managing director at Kroll said.
A formal sales process in June had been unsuccessful after UK consumer confidence hit a record low in August, Ingram added.