Eve Sleep shares fall on funding requirement
Mattress seller Eve Sleep has seen shares crash by almost 50 per cent after admitting it will need further funding in October.
Shares were down 47.5 per cent on Tuesday morning, after the firm said shoppers had shunned big ticket items and homeware goods amid pressure on household budgets.
The London-listed sleep-wellness brand–which entered into a formal sales process in June after launching a review of the company’s strategic and financing options–said it has received a number of indicative proposals, though none have resulted in firm offers for the group.
Although big cost savings had been achieved, more cash would be required in October with cash reserves set to be fully drained by the autumn, bosses warned.
Sales in the UK had dipped 18 per cent compared to the previous year while gross profit had plunged by a third.
The sleep wellness brand said there had been “no let-up in the challenging market backdrop over the summer,” with consumer confidence sinking to record lows in August.
“We are doing everything possible to manage the business through these incredibly difficult times, whilst speaking with potential investors and strategic partners to secure fresh investment aiming to put eve on a more secure and sustainable footing,” eve Sleep’s CEO Cheryl Calverley said.
“Truly unprecedentedly appalling market conditions” had prevented 2022 from being “the transformative year that it was intended to be”, the CEO said.
The company was now focusing on “navigating the current storm through to calmer waters with a much more efficient business,” Calverley explained.
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