Online mattress retailer Eve Sleep enters administration nightmare
Online mattress retailer Eve Sleep has collapsed into administration after a “heartbreaking” decision to call off the search for a rescue takeover.
CEO Cheryl Calverley, said Eve had “moved heaven and earth” to keep the business afloat, but the “scale of Eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months’.
The company has been battered by the savage downturn in online home furnishing sales, as the cost of living crisis caused consumers to retreat from all but essential purchases. It has been carrying out a strategic review since June to examine the “financing options” of the business.
Eve said: “A number of indicative offers were received; however, following further discussions and the facilitation of due diligence, discussions with respect to a sale of the company or in relation to an equity or other such fundraising transaction have not been successful.”
The company said that “regrettably” the board had concluded that it is required to “take the necessary steps” to “preserve value for its creditors”.
It has appointed Matt Ingram and Jimmy Saunders from Kroll Advisory to deal with the administration process. The brand and website have been taken over by Bensons for Bed. Around 20 emp.oyees are expected to lose their jobs.
Calverley, said:“It is heartbreaking to have to acknowledge that the best way to preserve value for creditors, those partners and suppliers that have helped us on this journey, is to now terminate the formal sale process and appoint administrators.
“Despite monumental efforts to restructure the business and reshape the cost base, 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.
“Whilst it may be scant succor in the face of the current situation, we have moved heaven and earth to seek a way forward as an independent or acquired business, but ultimately prevailing market conditions just do not support that.”
