Sports Direct has acquired Evans Cycles but plans to close half of their stores.
The troubled specialist cycle firm was placed in administration before being immediately snapped-up by Mike Ashley’s Sports Direct.
Evans Cycles, which has 62 shops and employs around 1,300 people, was bought for an undisclosed sum after going into administration, following the firm trying to organise a rescue deal bringing in accountancy firm PwC as advisers.
Matt Callaghan, Ian Green and David Baxendale of PwC were appointed joint administrators of FW Evans Cycles (UK) Limited (“Evans”) on October 30. Immediately following the appointment of administrators the business and assets of the company were sold to three companies all of which are ultimately owned by Sports Direct International PLC.
Matt Callaghan, joint administrator and PwC partner, 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. A combination of losses, the capital expenditure requirements and tightening credit has led to a liquidity crunch.”
Despite acquiring the brand Sports Direct intends to close half of Evans Cycles stores putting 100s of jobs in jeopardy.
Mike Ashley, Sports Direct Chief Executive, said: “We are pleased to have rescued the Evans Cycles brand. 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.”
James Keany at CBRE has been retained on all property related aspects.
Mr Keany said: “We are looking forward to working with landlords in order to help create a sustainable business. We will make contact with landlords over the next few days and discuss the future of individual stores.”
