Eve Sleep calls in administrators as it abandons sale process
The company’s share prices slumped more than 90% this year, and despite receiving a number of offers from potential buyers, none reportedly progressed past due diligence
Mattress company Eve Sleep has reportedly appointed New York-based Kroll Advisory as its administrator after abandoning its efforts to secure a buyer.
The business is said to have tried restructuring and reducing its cost base, but “lacked” the scale to continue as an independent business.
The news comes as the company’s share prices slumped more than 90% this year, and despite receiving a number of offers from potential buyers, none reportedly progressed past due diligence.
The online furniture retailer Made.com, on which Eve Sleep operates, has also entered in talks with a number of companies to secure a rescue deal by the end of the month, as the company has seen consumers spend less on their ‘big ticket’ items.
In addition, Made.com has tried to preserve its finances since the start of 2022 by limiting forward purchasing of inventory, implementing a hiring freeze, stopping spending on marketing, and reducing its capital expenditure.
Cheryl Calverley, chief executive of Eve Sleep, 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.
“The scale of Eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months. 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.”
In its latest update, Made.com said: “The board of Made.com has received a number of non-binding indicative proposals. Having reviewed these proposals the board has invited a select number of parties to progress towards firm offers by the end of October, following a due diligence process.
“Based on the working capital requirements of the group, any firm offer would require interim financing to be put in place at the time that firm offers are expected, which the parties involved in the process are aware of.”
