Bensons for Beds rescues Eve Sleep brand after hiring administrators

Online mattress retailer Eve Sleep has been purchased by Bensons for Beds after saying it had called in administrators following a failed sale process.

Bensons acquired the brand, website and assets on Monday with plans to retain Eve as a standalone brand and relaunch its website later this month.

Eve had its shares suspended from the London Stock Exchange’s AIM index after hiring Matthew Ingram and James Saunders of Kroll Advisory as administrators, who will now be required to manage the sale of the brand.

The company floated on the stock market in 2017 with a £140 million valuation, but has suffered declining customer numbers and increased cost pressures in recent years.

In June, it revealed it was looking for a buyer or new investor as it warned it would miss revenue targets for the year after a period of significant consumer downturn.

Its chief executive said on Monday morning that it was “heartbreaking” that terminating the sales process and appointing administrators was the best way to preserve value for creditors, partners and suppliers.

Bensons – which operates 166 stores across the country – has ambitious plans for growth and transformation after recently securing additional investment from its owner, Alteri Investors.

North London-based Eve will be added to its portfolio which already includes beds and mattress brands Slumberland and Staples & Co.

The value of the acquisition has not been disclosed.

Gavin George, chief executive of Alteri Investors, said: “It is encouraging to see Bensons continuing to strengthen its position in what remains a challenging market.

“Eve Sleep is a strong brand name that resonates with a different demographic of younger consumers.

“Alteri is pleased to back Bensons’ management in the acquisition of a brand which will augment the group’s offer, widen its appeal and boost its digital credentials.”