// Revenues at Eve Sleep have dropped 18% this year amid “truly unprecedentedly appalling market conditions”
// Eve said it had had “a number of indicative offers”, none of which have led to any firm proposals
Eve Sleep has said it will need further funding in October should no sale offers be received for the mattress retailer after revenues plunged 18% this year in what its boss called “truly unprecedentedly appalling market conditions”.
Reporting a doubling in pre-tax losses, the business said although a number of indicative offers had been received none have led to any firm proposals.
The company said it had been planning for significant growth in 2022 and had structured the business accordingly with significant cost savings have been made, but further cash will still be required in October based on current management forecasts as cash reserves will be fully depleted.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Its revenue in the six months to the end of June fell 16% to £11.6 million compared to the same period last year, and its overall losses doubled to £4.6 million.
As a result, the business was forced to consolidate its products to focus on its most profitable lines and has slashed its annual overheads by £2.5 million while also cutting salaries for its senior executives and restructuring its staff.
Eve Sleep chief executive Cheryl Calverley said: “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,”
“The business has been streamlined dramatically, with cash preservation our absolute focus.”
“Truly unprecedentedly appalling market conditions have stopped 2022 being the transformative year that it was intended to be despite a very bright start and our focus is now on navigating the current storm through to calmer waters with a much more efficient business.”
Back in June, the company commenced a process to see if it could be sold, or whether there were other financing options available to it.