D2C sleep wellness brand eve Sleep has gone into administration.
Since 6th June, eve’s board has been undertaking a review of the company’s strategic and financing options, with a view to delivering additional funding, conducted under the auspices of a formal sale process.
A number of indicative offers were received, yet, says eve, following further discussions and the facilitation of due diligence, discussions with respect to a sale of the company or in relation to an equity or other such fundraising transaction were not successful.
In order to “preserve value for creditors”, the board has therefore signalled the appointment of Matthew Ingram and James Saunders of Kroll Advisory as joint administrators to eve Sleep.
Eve says the likely outcome to creditors is unknown, and “it is not expected that the appointment of the joint administrators will enable there to be any return to the shareholders”.
CEO Cheryl Calverley comments: “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. Whilst it may be scant succor 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."
The board requested a suspension of trading at 7.30am this morning.
