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seller of low pressure mattresses On the eve of sleep nearly half of its already paltry market value was wiped out after it said it was losing customers year-on-year and that sales were not recovering.

The retailer said orders it received directly from customers in July and August were down 14% in the UK and Irelandand 16% of Francecompared to a year earlier.

The market remains “highly promotional” – meaning companies are offering discounts – Eva said on Tuesday. Actions fell more than 46% on the news.

“It was a very successful year with January running ahead of schedule, but in February and March it became clear that the war in Ukraine, falling consumer confidence and rising inflation had a significant impact on the home goods market,” said Eve. .

This forced Eve to cut costs. The board members took “significant salary cuts”, restructured the team and “saved all overhead costs in the business”.

Overhead costs — those costs that are not directly related to production and include rent, utilities and salaries — will be almost a third lower in the fourth quarter of the year compared to the first three months of 2022.

Eve Sleep’s problems are far from new. Less than five years ago, it was worth £175 million on the London Stock Exchange.

But by Tuesday this had fallen to £1.1m – after the share price fell by more than 99%.

Bosses hope that a more streamlined version of the business could attract some outside investment that could save the troubled company.

“We are doing everything we can to manage the business during these incredibly difficult times, while talking to potential investors and strategic partners to secure new investment to put Eve on a safer and more sustainable footing,” said Chief Executive Cheryl Calverley.

“The business has been dramatically streamlined and our full focus is on preserving cash.”

She added: “The truly unprecedentedly dire market conditions have prevented 2022 from being the transformational year it was intended to be, despite a very bright start, and our focus is now on navigating the current storm into calmer waters with much more efficient business”.

https://www.standard.co.uk/business/business-news/nightmare-continues-for-eve-sleep-investors-as-sales-soften-b1026809.html

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