The Daily Telegraph

Mattress web retailer Eve Sleep bought by rival after collapsing

- By Gareth Corfield

ONLINE mattress retailer Eve Sleep has been bought out of administra­tion by rival Bensons for Beds after collapsing last night.

Cheryl Calverley, Eve chief executive, said bosses had “moved heaven and earth to seek a way forward”.

She 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.”

Eve appointed administra­tors from Kroll yesterday and requested its shares were suspended from trading on the AIM. Attempts to sell the mattress vendor as a going concern or to raise fresh equity were unsuccessf­ul, the company said. Around 20 UK jobs were at risk from the collapse.

In September Eve said it had made £11.6m in sales during the first six months of this year, a fall of 16pc on last year. Gross profits were down by a third, with pre-tax losses at £4.6m. Privately held Bensons for Beds acquired the Eve brand, website and assets yesterday and plans to relaunch Eve later this month, retaining its standalone identity.

Gavin George, chief executive of Bensons owners Alteri Investors, praised the Eve acquisitio­n. He said: “It is encouragin­g to see Bensons continuing to strengthen its position in what remains a challengin­g market.

“Eve Sleep is a strong brand name that resonates with a different demographi­c of younger consumers.”

Eve floated on London’s Alternativ­e Investment Market in 2017 with a £140m valuation but has suffered declining customer numbers and increased cost pressures in recent years. The company was trading at 0.54p on Friday, a far cry from highs of £1.26 in 2018.

After Eve’s shares fell more than 90pc in mid-2018, it discussed a merger with rival mattress start-up Simba, but no deal was struck. In June Eve revealed it was looking for a buyer or a new investor as it warned it would miss revenue targets for the year after a period of significan­t consumer downturn.

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