17th Oct 2022 19:32
(Alliance News) - Bed retailer Bensons for Beds on Monday confirmed that it acquired the eve Sleep PLC brand, website and related assets, shortly after eve Sleep reported that it had appointed administrators after talks to sell the company broke down.
Bensons bought the London-based mattress retailer for an undisclosed sum.
The acquisition comes weeks after Bensons secured additional investment funds from Alteri Investors to "drive its growth strategy and transformation plans."
Bensons said it intends to retain eve Sleep as a standalone brand and re-launch evesleep.co.uk later this month.
"The move to acquire the eve Sleep brand will widen Bensons' appeal and is a measure of its ambition as it continues to invest in its retail, manufacturing, digital and distribution operations," it stated.
Bensons – which operates 166 stores across the country – will add eve Sleep to its portfolio which already includes beds and mattress brands Slumberland and Staples & Co.
On early Monday, eve Sleep had said it appointed administrators.
"The likely outcome to creditors of the company is currently unknown and it is not expected that the appointment of the joint administrators will enable there to be any return to the shareholders of eve," the company said.
In September, the London-based sleep wellness brand noted a doubling of its interim pretax loss to GBP4.6 million in the six months to June 30 from GBP2.3 million the year before. Revenue dropped 16% to GBP11.6 million from GBP13.9 million. It said the negative market backdrop worsened demand for big-ticket items and homewares.
It has appointed Matthew Ingram and James Saunders, both of Kroll Advisory Ltd, as joint administrators.
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."
eve Sleep said a number of "indicative offers were received", but talks were unsuccessful.
eve Sleep floated on the stock market in 2017 with a GBP140 million valuation, but has suffered declining customer numbers and increased cost pressures in recent years.
In June, it revealed it was looking for a buyer or new investor as it warned it would miss revenue targets for the year after a period of significant consumer downturn.
eve Sleep shares are suspended.
By Abby Amoakuh; [email protected]
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