Half of Evans Cycles stores are set to close after the retailer was bought out of administration by Sports Direct. Administrators said Evans Cycles had failed after a year in which the retailer lacked the cash to invest in stores and develop its online platform.
In a statement, Matt Callaghan, partner at PwC and joint administrator for Evans Cycles, said: “2018 has been a very difficult trading year for the business, in part due to the impact of the extended winter weather in the early part of the year and a lack of cash to invest in stores and develop the online platform”
Evans Cycles, a Top50 retailer in IRUK Top500 research, was bought out on Tuesday, by Sports Direct.
“We are pleased to have rescued the Evans Cycles brand,” said Sports Direct chief executive Mike Ashley. “However, in order to save the business, we only believe we will be able to keep 50 per cent of stores open in the future. Unfortunately, some stores will have to close.”
This marks Sports Direct’s second rescue deal of a struggling retailer. In August, Sports Direct stepped in to rescue House of Fraser for the bargain price of £90million.
As reported by Cyclist, Evans was facing same-sector competition from a pure-player Wiggle and brick-and-mortar retailer Halfords, which owns a cycling-specific subsidiary Cycle Republic.
Image: Evans Cycles