Eve Sleep hunts for buyer as slow sales hit mattress firm

ONLINE mattress firm Eve Sleep has put itself up for sale as it warned that it will miss revenue targets this year following a slump in demand.

The retailer is looking for a new owner or fresh investment after takeover talks with an unnamed US suitor fell through. The board has decided to launch a formal sale process, but warned a deal may not materialise.

It said that there was no certainty “any offer will be forthcoming” or that the terms would have to be satisfactory for the company and its investors.

The struggling mattress seller said it would not be able to meet its revenue targets in the face of declining consumer confidence and rising inflation.

“Eve is, like all direct to consumer businesses, exposed to ongoing weaknesses in the economy,” the company said. Orders fell by 15pc in the UK and 3pc in France in the five months to May 29 compared to last year.

If the retailer finds a buyer it will mark the end of a torrid five years as a listed company. The shares were worth about 100p when it floated, but were trading at around 1p yesterday, with its stock slumping by a third compared with Friday’s closing price.

The company said a cash injection will allow it to branch into the “wider sleep wellness space” beyond selling bed mattresses in a box.

Eve was set up in 2014 amid an influx of online mattress start-ups including Casper, Emma and Simba. The number went from a handful to 175 since then. But sales fell 29pc in the first four months of the year in the UK compared to last year, says IMRG Capgemini.