Eve Sleep has confirmed that it has begun the process of entering administration following a financial crisis which an executive described as an “economic tsunami”.
The hugely-popular mattress company had initially been in the process of selling up as they received a number of indicative offers from interested buyers.
None had progressed beyond due diligence, including what once were positive talks with a US investor, leaving Eve Sleep no choice but to call in administrators in the hope of a rescue deal.
The UK-based e-commerce business has seen its share price slump by 90-percent over the course of 2022. It has tried to restructure and reduce the cost of its model, but lacked the scale to do so.
At one point in 2017, Eve Sleep was valued at over £140 million on the stock market.
Since June, the company has struggled to financially adjust to the downturn in online home furnishing sales as the cost of living crisis continues to force cash strapped consumers to prioritise essential purchases.
In a statement, Eve Sleep’s chief executive Cheryl Calverley explained the “economic tsunami” that has swept the company: “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.
“The scale of Eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months,” said Calverley. “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.
“It is anticipated that the joint administrators will be appointed by the court during the course of the day [Monday]. As a consequence of the above, the formal sale process has been terminated and the company has ceased to be in an “offer period” as defined in the takeover code.
The outcome for creditors and shareholders is largely unknown, however the statement confirms that it is not expected that they will see any return for their investment in the business.
Eve Sleep’s shares have subsequently been suspended from the London Stock Exchange as a result of the administration process.