The mattress company Eve Sleep has called in administrators, blaming an “economic tsunami” for the decision.
“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,” the chief executive of Eve Sleep, Cheryl Calverley, said.
AJ Bell’s Russ Mould said: “It’s all over for investors in Eve Sleep after the mattress seller prepares to go into administration. The business will keep trading while the administrator looks for a buyer, yet shareholders will have almost certainly lost everything. Trading in the stock has been suspended, and typically in these situations, shareholders won’t get anything back even if a buyer is found.
“Eve Sleep has been more of a prolonged nightmare for investors rather than a stock that is tucked away and slowly works its magic. It has gone from 127p per share in 2018 to 0.54p in just over four years. Management couldn’t generate a profit and the company was haemorrhaging cash.
“It goes back to the basics of business – you need a good idea, good execution and enough people to want to buy the product so you receive more money than you spend. Sadly, Eve Sleep didn’t have all the right elements.”