Shares slide as UK retailers join households facing a grim winter

theguardian.com:

The cost of living storm sweeping across Britain’s retailers is buffeting companies ranging from e-card seller Moonpig to mattress firm Eve Sleep and the DIY business Kingfisher, which owns the B&Q and Screwfix chains.

It has become the new buzzword in company updates, as the Covid pandemic recedes, while Brexit continues to inflict damage on trade and staffing. A recession looks almost inevitable – according to some economists, we are already in it – as households and outlets from bars to shops buckle under the strain of energy bills, which have jumped mainly as a result of the war in Ukraine.

The mounting pressures are reflected in the share prices of companies that fared well during the pandemic: Moonpig stock fell about 11% on Tuesday, and is down 52% over the past year, Kingfisher shares lost more than 5%, and have slid 34% in the past 12 months, while Ocado shares lost 63% in the same period. Shares in Eve Sleep, which is fighting for survival and looking for a corporate saviour, tumbled 46% to 39p, taking its 12-month losses to 89%.

In a grim warning, the firm said it would need fresh funding next month unless it receives a takeover offer. It is dangerously close to running out of cash, and inching closer to administration, as indicative bids have not translated into firm offers, with interested parties perhaps waiting until they can buy the business out of administration.

“If further funding cannot be raised, or a firm offer for the company is not received before the company’s cash reserves are fully depleted, the board will take the appropriate steps to preserve value for creditors,” the company said.

Trading has been torrid in the homewares market – where Eve Sleep is the only listed bed and mattress retailer –