Evans Cycles bought by Sports Direct

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1st reported on Forbes by Carlton Reid today it has now been confirmed that Mike Ashley owner of giant retailer Sports Direct has aquired the 60 store chain Evans Cycles.

Earlier this month Evans was in talks with Halfords after it announced it need a rapid cash injection to stay afloat. Those talks ultimately came to nothing which has apparently allowed Sports Direct to step in and snap up the high street chain.

Mike Ashley is reported to have stated that it is likely that to keep the chain afloat up to 50% of stores may need to close.

“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.

More as we get it

 

 

Comments (20)

  1. Bit disingenuous to use the word ‘rescue’.

    Ashley lets the business become insolvent, then jumps in to buy the assets at a knockdown price. One of those assets happens to be the ‘Evans’ brand. But it’s OK because it’s called a ‘pre-pack’. I very much doubt many creditors will see this as a ‘rescue’, nor the landlords, nor the poor employees affected.

  2. Dunlop BSOs coming to a store near you?

  3. Well that’s screwed it up.

  4. A ‘Pre Pack’ is just a fancy term for a business putting itself into administration, then being ‘bought’ as a new company having shed a load of its obligations. There are some strict rules to follow as otherwise it would make it too easy, but they are just onerous enough to make it undesirable, whilst some jobs can be saved (which always looks good politically). The administrators and consultants make a killing, though……

  5. If it’s anything like the Sports Direct take over of Field and Trek, Evans will be soon only be selling £25 Chinese bikes and bike related tat.

  6. They were not very good anyway, but with that fella in charge there is no way I’d ever have any dealings with them ever again.

  7. Just as with House of Fraser.
    Not a rescue.
    A plundering at a fire sale.
    Staff get fecked over.
    Creditors even more so.

  8. Suppliers will be the losers and I cant see what value Mike Ashley will bring to this business, I suppose they will end up stocking cheap bikes and totally ruin the brand.

  9. Saying this will screw Evans up is too little too late, Evans screwed themselves up. 6 quid for a puncture repair kit…. That was the last time I’d use them.

  10. This man has too many fingers in too many pies, just what does he understand about this business sector, the size of him maybe he should sign up for the cycle to work scheme, a sad day for the sector but good for those wanting a Christmas bargain, unless of course those owed money simply take their goods back for monies owed.

  11. @gavalar Yeah what does HE know about his business sector…….I mean he’s only worth $3.2b the dummy

  12. I’d imagine that most bike brands that supplied Evans would have a retention of title clause in their T&C’s. Therefore bike brands will likely collect their stock if the Administrators offer them a derisory figure as it’s cost effective to drive a Luton van around the stores picking up £k’s of bikes. It’s the clothing and accessories brands that will get shafted the most as the cost of collecting the stock is nearly as high as bikes but obviously the value is much lower. They will just have to accept whatever (if anything) they are offered.

    SDI is an impressive business but they are not interested in low margin niche markets and high cost levels of service. Unless SDI have a complete change of business model I don’t see how they will run a successful chain of bike shops to match the needs and aspirations of cyclists that feel they need more than they can get from Halfords or GO Outdoors. You only have to look at what SDI have done with brands and retailers they have acquired in Outdoor and Cycle (Field & Trek, Yeomans, Karrimor, Muddy Fox, etc) before to see this.

    On the plus side there are 30 stores about to become available that could make excellent IBD’s.

  13. Not the end of the world if you have a great LBS, have used them from time to time, but will have to completely boycott now.

  14. I didn’t realise SD had bought Karrimor. That would explain why the brand has fallen off a cliff quality wise in recent years then…

  15. Yep re Karrimor. That’s why you get cheapo running shorts and T shirts for 5-10 quid, but not decent rucksacks. (Mist be a decade or more since SD bought the Karrimor name – again in a fire sale from administrators, certainly not a rescue of a real manufacturer in lancashire.

  16. just goes to show we all need to use local IBD’s more or loose them can you imagine callling sports direct up for advice???

  17. I’ve shopped with Evans for the best part of twenty years. I’ve popped into the majority of the London stores for something or other, from lights to bikes. The service has always been hit or absolute miss. Recently, it’s dropped off a cliff and it’s fair to say they got what they deserved. They charged me a fortune for a ‘Gold Service’ …ready in 24hrs. It took over two weeks which included me ordering parts from another company (Hub bearings.) for 24 hour delivery into Evans, as they couldn’t get them through their own supply chain. I had to return the bike two days after I picked it up… as they’d also fitted old bearings in the bottom bracket.

    With Ashley involved, it won’t be long before the established brands like Cannondale, BMC and Specialized take flight.

  18. I’m after a decent mountain bike, do they still sell Raleigh Mavericks at Evans?

  19. Sdi already own tri uk in Yeovil

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