Mattress company Eve Sleep says sales are down 18% amid “appalling market conditions”

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The company has started the potential sale process and is looking for alternative financing options going forward.

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Mattress company Eve is down 18% this evening in what the company called “a truly unprecedented catastrophic market situation,” resulting in slashing executive pay and seeking new investments.

The company said it was planning for significant growth in 2022 and has structured the business accordingly.

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But since February, the effects of the war in Ukraine, consumer price inflation, fears of rising fuel prices and four increases in UK base rates have eroded consumer confidence and reduced spending on household furniture.

In the six months to the end of June, its revenue fell 16% from the same period last year to £11.6 million, and its total loss doubled to £4.6 million.

This meant that Eve was forced to consolidate its products to focus on its most profitable lines, and has cut its annual overheads by £2.5 million.

It also cut the salaries of its superiors and restructured its staff.

Summer sales remain sluggish, with direct sales to customers in the UK and Ireland down 14% in July and August compared to the same months last year, while sales in France were down 16%.

In June, the company began a process to see if it could be sold, or whether there were other financing options available to it.

Eve said she had “several suggestive offers”, none of which were pursued.

“Based on current management forecasts, Eve will require further funding in October 2022,” the company said.

“If further funding cannot be raised, or a substantive offer for the Company is not received before the Company’s cash reserves are fully depleted, the Board will take appropriate steps to preserve value for creditors.”

Eve CEO Cheryl Calverley said “everything possible” was being done to keep the business afloat.

He added, “The truly unprecedented catastrophic market conditions have prevented 2022 from being the transformational year it was intended to be despite a very bright start and now our focus is to weather the current storm with more efficient business through calm waters.” on navigating.”

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