(Alliance News) - Mattress maker eve Sleep PLC has appointed administrators after talks to sell the company broke down.
"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 shares are suspended.
By Tom Budszus; tombudszus@alliancenews.com
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