Bensons for Beds paid just £600,000 for the rescue of Eve Sleep

Bensons for Beds released Eve from administration on October 17

// Bensons for Beds bought Eve Sleep for just £600,000
// The Eve Sleep trademark and intellectual property was purchased by Bensons on October 17

Bensons for Beds acquired Eve Sleep for £600,000, after the mattress retailer fell into administration earlier this month.

The Eve Sleep brand and intellectual property was purchased by Bensons on October 17.

According to the administrator’s report, Bensons outbid two other players to secure the deal and initially offered £300,000 before it was negotiated down to £600,000.

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Other offers for the business included a similar offer at a lower amount and one on a going concern basis for the transfer of employees, for £25,000.

Eve Sleep’s intellectual property and assets were sold for £494,999 and her business contacts for £100,000. Other assets include a cash balance of £300,000 at the date of administration and book debts.

Eve Sleep was valued at £140million when it was introduced on AIM in 2017.

Preferential claims of £400,000 are due to HMRC, which will be paid in full, while unsecured sums are in the order of £2.4 million.

Administrators said there was a possibility of return for unsecured creditors. However, it was too early to provide details on quantity or date.

Bensons for Beds said the purchase of Eve Sleep, which was backed by owner Alteri Investors, would help the company broaden its appeal and boost its digital development.

Kroll Investments co-director Matt Ingram said: “Eve Sleep is a well-established brand with huge visibility across the UK; however, it has faced a difficult market environment over the past year.

“The company launched a formal sales process in June 2022, but with UK consumer confidence hitting an all-time high in August 2022, that process fell through.”

Nick Collard, Managing Director of Bensons for Beds, said: “Eve Sleep is a brand that we know resonates strongly with key customer groups and we look forward to unlocking its full potential by leveraging our scale and our reach.

“Additionally, integrating Eve Sleep alongside our own growing portfolio of high-quality, internal brands will help us broaden Bensons’ appeal to a wider range of customers.”