E Point Perfect
Shopping

Eve Sleep will need a further cash injection as sales plunge 18% amid ‘appalling market conditions’


Revenues at mattress company Eve have plunged 18% this year
Eve’s CEO Cheryl Calverley said “everything possible” was being done to keep the business afloat.
// 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.

Click here to sign up to Retail Gazette‘s free daily email newsletter



Source link >

Related posts

Sustainable department store The Good Store opens in London

Dawn Zuniga

Mike Ashley escalates legal battle over Debenhams bankrupcy

Dawn Zuniga

Tesco UK sales fall amid changing customer behaviour and surging inflation

Dawn Zuniga

The American candy shop scandal: how sweets led to decay on Oxford Street

Dawn Zuniga

Britain to re-introduce tax free shopping for tourists

Dawn Zuniga

Poundstretcher profits halve as it pushes ahead with store expansion

Dawn Zuniga