// Bensons for Beds has bought Eve Sleep out of administration for an undisclosed amount
// It plans to run Eve, which appointed administrators this morning, as a stand-alone brand
Bensons for Beds has bought Eve Sleep’s brand, website and intellectual property out of administration as it steps up its growth plans.
The retailer, which is backed by Alteri Investors, confirmed it will operate Eve Sleep as a stand-alone brand and would relaunch its website next month.
Eve Sleep was forced to abandon its plans to find a buyer and call in administrators today, after chief executive Cheryl Calverley said that despite moving “heaven and earth to seek a way forward” its efforts had fallen flat.
She said: “Despite monumental efforts to restructure the business and reshape the cost base, the scale of Eve was simply insufficient to withstand the economic tsunami that has gathered momentum over the past six months, and allow it to continue as an independent business.”
Last month, Eve revealed that UK revenues plunged 18% year on year in its first half, in what Calverley called “truly unprecedentedly appalling market conditions”.
Bensons, however, has seen the potential in the brand, which it said had “significant customer recognition”, particularly with younger shoppers, and would widen its appeal.
The acquisition comes weeks after Bensons secured additional investment from Alteri to drive its growth strategy and transformation plans.
At the time of that new investment, Bensons made it clear it would accelerate digital development, which the Eve Sleep acquisition underlines.
Bensons for Beds chief executive Nick Collard said: “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.
“What’s more, bringing in Eve Sleep alongside our own growing portfolio of high quality in-house brands will help us widen Bensons appeal to a broader set of customers.
“With the backing of our owner, Alteri Investors, this is another indication that we are delivering on our pledge to fulfil the promise of the Bensons for Beds brand itself – not just as a retailer of market leading proprietary brands, but with a distinctive and coherent set of owned brand sleep solutions for any customer, both digitally and through our stores.”
The acquisition comes just two years after Bensons itself underwent a pre-pack administration.
Alteri’s new investment comes two years after it first invested in Bensons. The beds retailer underwent a pre-pack administration in 2020 but has since returned to profit and is pushing ahead with its turnaround.
Alteri Investors CEO Gavin George added: “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.”