Mattress-in-a-box brand Eve Sleep has drafted in administrators after abandoning its bid to find a buyer to turn around its fortunes.
The retailer has today announced the appointment of Matthew Ingram and James Saunders of Kroll Advisory as joint administrators and warned it was not expected the appointment would give “any return to the shareholders”.
Eve Sleep’s management had previously begun a formal sale process for the business in a bid to either sell it off whole or raise fresh equity and the retailer said it had received “a number of indicative offers”.
However, “following further discussions and the facilitation of due diligence” of the bids, the retailer has decided to abandon the sale process and appoint administrators.
As a result, Eve’s shares have been suspended from trading on the Stock Exchange and the retailer’s nominated adviser and broker, FinnCap, has resigned.
Eve chief executive Cheryl 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.
“Having seen the year start so brightly, with the efforts of the team over the past three years in rebuilding Eve into a business fit for profitable growth coming to fruition, the frustration at the unprecedented downturn in the market over February and March was felt all the more keenly.
“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.
“I want to thank, with all my heart, the brilliant team here at Eve whose incredible loyalty, passion and commitment to serve customers in our inimitable Eve fashion through some very trying times has been downright inspirational.
“On behalf of the board, I also want to thank shareholders for their loyalty and support; their position and inevitable disappointment is keenly felt. While it may be scant succour 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.”
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