Eve Sleep PLC (AIM:EVE) has been bought by privately owned Bensons for Beds on the same day that the mattress-in-a-box company appointed administrators.
The 166-store Bensons chain, which is owned by private equity group Alteri Investors, said it had bought Eve's website, brand and other related assets to increase its appeal to younger customers.
“Eve Sleep is a brand that we know resonates strongly with key customer groups and we’re looking forward to unlocking its full potential as it takes advantage of our scale and reach.” said Bensons chief executive Nick Collard.
The AIM-listed company's shares were suspended from trading on AIM at 7.30am, as Matthew Ingram and James Saunders of Kroll Advisory were appointed as joint administrators, with a warning that no return to shareholders was expected.
Previous efforts by Eve to find a buyer or raise new funds proved unsuccessful after it warned last month that further funding was needed after rising costs and falling sales led to pre-tax losses doubling in the first half of the year.
Chief executive Cheryl Calverley said in a statement in the morning 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 board had received “a number of indicative offers” but after further talks and due diligence it said “discussions with respect to a sale of the company or in relation to an equity or other such fundraising transaction have not been successful”.