As reported by BikeBiz, UK bicycle company Planet X has announced that it will be shedding part of its workforce, blaming Brexit in the process. The news story was broken by BikeBiz, where author Carlton Reid alluded that things haven’t been plain sailing for the Yorkshire-based company in recent times. Reid states;
“The Rotherham-based company employed 118 staff, and is run by founder Dave Loughran. Its last accounts show an annual turnover of £18.3 million, and profit of £109,689. In 2015 the company made a loss of £86,594 on a turnover of £20 million.”
From the news article published by BikeBiz:
“Planet X of Yorkshire, has made almost half of its staff redundant, sources say. Brexit is being blamed. The Rotherham-based company employed 118 staff, and is run by founder Dave Loughran. Its last accounts show an annual turnover of £18.3 million, and profit of £109,689. In 2015 the company made a loss of £86,594 on a turnover of £20 million.
Planet X – which employed 142 staff in 2015 – owns the On One and Holdsworth marques, and also supplies eponymously-branded bikes. The company’s loss-making US operation was closed at the end of January.”
Update: We’ve been contacted directly by Planet X, who dispute the statistics published by BikeBiz about the company redundancies. They have sent us the statement below.
Statement from Planet X – Updated 22:00 2nd November
After 28 years we are still founder and enthusiast owned, as such, we have no external pressure to deliver huge profits for shareholders. Our passion and reputation for designing and manufacturing performance products at great value sets us apart.
This passion and reputation continues to grow, in fact, this past year has seen sales at record highs, coupled with the spikes generated by our notorious sales, we were acutely aware that our operational capability was not flexible enough to cope with such surges in demand.
Add to this our design team, comprised of Jamie Burrow, former US Postal Pro Rider, Mark Lovatt, 6 times Tour of the Peaks champion and, now joined by Spencer Smith, 3 time world Triathlon champion, have been working hard for the past 12 Months on a new line up of bikes, clothing and accessories, which we think they have absolutely “nailed’, we are expecting demand to continue to grow.
In order to address this, we have joined forces with world class e-commerce fulfilment specialists Abbey personnel services who boast clients such as Ted Baker, ASOS, Tescos, ASDA Fresh Produce and Poskitts Carrots and Pumpkins.
This means our fixed costs are reduced but we now have the capability to cope with the huge demand our notorious products and massive sales generate.
Abbey Personel Services is a Selby based employment agency who, according to their website, specialise in providing “..industrial and commercial staff for temporary and permanent engagements from short term, ad-hoc cover to high volume on site managed contracts.”
Bikebiz have told us that they stand by their story. Company records, seen by Singletrack, appear to corroborate the figures quoted by Bikebiz.