Sleep wellness brand eve Sleep has entered administration after failing to secure a successful sale or other fundraising.
Since 6 June 2022, the board of directors of eve has been undertaking a review of the Company’s strategic and financing options, with a view to delivering additional funding to the Company and maximise value for its stakeholders. This Strategic Review has been conducted under the auspices of a formal sale process, as defined in the Takeover Code, which has enabled the Company to evaluate all possible corporate transactions, including the sale of certain parts or the whole of the Company or a potential equity fundraising, as well as other potential strategic options.
A number of indicative offers were received; however, 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 have not been successful.
The Board has concluded that it is required to take the necessary steps to preserve value for creditors. Consequently, eve has appointed Matthew Ingram and James Saunders, both of Kroll Advisory Ltd, as joint administrators. As a consequence of the above, the Formal Sale Process has been terminated and the Company has ceased to be in an “offer period” as defined in the Takeover Code.
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.
Cheryl Calverley, CEO of eve sleep plc 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.”