The company, which was selling off, has seen its share price drop 90% this year.
Eve Sleep has confirmed that she began the process of entering administration following a financial crisis that one executive called an “economic tsunami”.
The hugely popular mattress company was initially selling out as it had received a number of indicative offers from interested buyers.
None had progressed beyond due diligence, including what were once positive talks with a US investor, leaving Eve Sleep with no choice but to bring in administrators in hopes of a bailout agreement.
The UK-based e-commerce company saw its share price drop 90% during 2022. It tried to restructure and reduce the cost of its model, but lacked the scale needed to do it.
At one point in 2017, Eve Sleep was valued at over £140m on the stock market.
Since June, the company has struggled to adjust financially to slowing online home furnishings sales as the cost of living crisis continues to force cash-strapped consumers to prioritize essential purchases.
In a statement, Eve Sleep’s chief executive, Cheryl Calverley, explained the “economic tsunami” that has swept through the company: “It is heartbreaking to have to recognize that the best way to preserve value for creditors, partners and vendors who helped us on this travel deal, is now to end the formal sales process and appoint directors.
“Eve’s scale was simply insufficient to withstand the economic tsunami that has accelerated over the past six months,” Calverley said. “We have left no stone unturned to look for a way forward as an independent or acquired company, but ultimately prevailing market conditions simply don’t allow it.
“It is expected that the joint administrators will be appointed by the court later today. [Monday]. As a result of the above, the formal sale process has been closed and the company has ceased to be in an “offer period” as defined in the takeover code.
The outcome for creditors and shareholders is largely unknown, but the statement confirms they are not expected to see a return on their investment in the business.
Shares in Eve Sleep were subsequently suspended from the London Stock Exchange following the administration process.