Evans Cycles is now being offered for sale as trading problems kick in and efforts to raise a cash injection do not appear to have worked.
Evans Cycles now being offered for sale, bids sought
The 60-store Evans Cycles business in the UK is now up for sale. It appears a plan to raise between £10-£20 million to stay afloat has not succeeded.
And now the business, which is almost 100 years old, is on the market. Final offers are being requested for the end of next week in order to secure a quick sale.
Reports on Sky News and BBC state the company’s potential backers for the cash injection that was initially sought have not put up the money.
And now the effort to keep the business trading is a sale rather than a rescue plan based on investors’ funds.
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Evans Cycles, which is 97 years in existence, is now owned by private equity firm ECI Partners.
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Two weeks ago it emerged the company, which has grown from one store to over 60 shops and a significant online presence, needed to raise capital.
It was taking advice on a financial restructuring. The move came two years after it experienced trading issues due to slowing sales.
And now the situation appears to have moved on, with the initial plan to raised at least £10 million not working.
Evan Cycles said last year it was bucking market trends. Sales of E-bikes had helped trade.
The company added that cycling in the UK, especially in cities, was still below rates of other countries. Because of that, it believed there was still growth left in the market.
Reports in Britain now say its advisers PwC are seeking bids from potential buyers and want offers submitted within the next week.
Evans Cycles began retailing in 1921 from its first store in Kennington in south east London. It was sold to ECI Partners three years ago for £80 million.
However, amid economic instability because of Brexit, and softening conditions in high street trading as online sales increase, the company has endured trading problems since it was sold.
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