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I've never bought a damn thing from Evans as i'm not a fan of massive chains of stores destroying LBS's, so they'll hardly miss my business, but this is definitely another store to add to the list i wont spend a pound at. Anything that MA touches is off limits to me (though the state of Geordie FC makes me chuckle inside). I am lucky in that i have a bloody great LBS in Westbrook Cycles in Stokesley who i absolutely try to give my hard earned money to (actually its an hours drive away but they're fantastic and always offer a discount or deal of some sort). A shame that people will lose jobs in order that he has another 0 in his bank account...but isnt it what Evans have been doing to LBS's for years?
Two further thoughts...
SD-Evans will be aiming at Halfords rather than LBSs now I imagine.
What does this mean for PX's ambition to be the SD of bikes?
Don't wish to say I told you so ..but I did earlier in the thread ..
God I detest that man ..yet another store / chain to boycott ..
I feel sorry for the Evans staff, seeing how SD staff get treated...
@ B.A.Nana Conviviality was not such a great example
Well, my repertoire is fairly limited of this sort of thing. 🙂 However, I thought it was a good example of what must have been obviously a complete accounting mess, yet still KPMG signed it off. PwC who came in to advise CVR (and eventually manage their Admin) are quoted as saying they were severely hampered by poor accounts that KPMG had signed off.
As administrators from PricewaterhouseCoopers (PwC) start to pick through the remains, they are understood to be severely hampered by poor record-keeping – in line with the chaotic picture of Conviviality that has emerged during its decline.
Interesting to note that the man from KPMG (yes them again) who signed off the Carillion accounts has been struck off from auditing accounts and had a hefty personal fine (that he has to pay himself, he can't get KPMG to pay it on his behalf...) so it may make individuals a little more cautious but the systemic problems haven't been solved
Not read any of the posts, but I imagine that will be the end of the Evan's Sportive series, which is a shame.
Doesn’t anybody else think that these acquisitions by Mike Ashley are just next years, or possibly the year afters BHS? Milked until they go bust, probably with a huge hole in their pension fund, with him having sailed off to Monaco with the loot?
He just seems like the new Phillip Green to me
Jon – you’re obviously very knowledgable on the subject. How do you think it is that the big four are allowed to continuously sign off the accounts for companies that fold, often with huge black holes in their accounts? They seem to do so with impunity, yet it happens time after time after time
I wouldn't say that, but I read and I've been involved in 2 prepacks in my time so have an idea what goes on with them.
But to hazard a 'guess' (you decide if it's educated or not 😉 )
1/ an auditor can only audit what he is shown; if CFO's, etc. are deliberately/maliciously hiding stuff from them it can be difficult to uncover. And CFO's at that level are very clever people......
2/ I suspect a bit of 'don't ask questions you won't like the answers to' - which is not the role of an auditor, but I suspect goes on.
Why they (the companies and/or the actual people) get away with it - i don't know but as others have said above, they don't (always)
mikewsmith. as I said above he is going to need the good staff to stay, especially the mechanics
He might be quite happy if they all walk out, then he doesn't have to honour TUPE and can re employ on his own excellent staff terms and conditions.
How do you think it is that the big four are allowed to continuously sign off the accounts for companies that fold, often with huge black holes in their accounts? They seem to do so with impunity, yet it happens time after time after time
Because business runs on debt. Everyone, everywhere owes someone, something. A company supplies its products to a shop, they're owed money for 30 days (or whatever the invoice period is). The shop pays but then they're in debt until customers come along and buy.
Meanwhile, the company still needs to make more product so although they're owed loads of money from the shops, they have to keep paying their suppliers... The shop still needs to buy in other products from other companies...
The margins aren't great anyway and the cycle industry seems to be one of almost perpetual discounts - partly driven by the likes of CRC / Wiggle but partly through a continual yearly cycle of new models, new kit, new colours. It's insane that a bike model can change year to year - it should be a case of release a model and then wait 3-4 years until the "new / improved" version comes out like Shimano do with their groupsets.
Cue a case of end of season sale, last year's models going out at little beyond trade price (in spite of having taken up valuable floor space all year along with a paid mechanic to build it, a paid sales person to sell it, an expensive retail environment to display it in).
Evans is just a slightly higher profile case due to the number of branches although for years they were offsetting losses of one branch against profits in another branch just to maintain a position on the high street. That's pretty standard business practice too - not all branches of a retail chain have to be profitable; occasionally it's good to have a presence on the high street just to keep a competitor out of there.
It's going to be interesting to see whether the Exposure Light that I ordered (due date of 22/11) turns up! Going into admin, I am wondering what impact that it may have on suppliers.
How many LBS have Evans destroyed over the past few years with crazy cheap deals , interest free credit , take your old shed of a bike and give money off your shiny new one , free delivery , price matching the internet etc ? So now we know how they did it , by trading at a loss which was ultimately unsustainable . Everybody who ever goes into a bike shop and asks for a price match is helping the demise of the bricks and mortar bike shops and ultimately is partially responsible for the demise of Evans .
No idea how it will pan out but Mike Ashley has owned Tri UK for a while now and having been in their Yeovil store last week they don't seem to have any shortage of high end brands (Cannondale, Factor, Cervelo, Scott, Time, Mavic, Zipp, Enve, etc, etc).
No Trek or Specialized at TriUK so it will be interesting to see if they stay but Evans must have been one of their biggest retailers and those manufacturers still need to sell bikes somewhere. Evans issues aside the brands like Trek and Specialized must also be taking a hit from direct to consumer brands like Canyon so maybe a long term we'll see more brands going that route.
With regards to the press reports on 50% of stores closing this is probably partly a negotiating tactic to get landlords to reduce rents, i.e. if you don't reduce rents we'll have to close the store and the landlord ends up with an empty store. Given the state of the retail market I can't imagine landlords have queues of other retailers lining up to rent their retail units so some might take the view that something is better than nothing and renegotiate whilst those that don't will be the stores that close.
Evans issues aside the brands like Trek and Specialized must also be taking a hit from direct to consumer brands like Canyon so maybe a long term we’ll see more brands going that route.
trek offer an online version now which still uses the dealer network, Spec have their concept stores but will do well by being in every town in the UK without the need for Evans, in some ways Evans was against what the big main bike shops do by shoving them all together on one rack with no real brand identification or product info.
As I said last night, I had 130 quid in tesco/evans vouchers still to spend and I hurriedly used them last night after reading this. Well, today I have had an order despatch email so it is looking like they were still honouring them last night/today.
If you have any I would get them spent asap!
I won't be converting any more tesco vouchers to evans until we find out whats happening.
On the plus side I've had a bout four hundred quids worth of gear from evans this year from a third of the value in tesco points.
Oh dear. We have a £1k ctw voucher inbound for Evans.
I wonder if we can wriggle out of it and change retailer?
Maybe, I wonder what percentage of Trek and Specialized's total UK sales were through Evans Cycles? I got the impression for earlier comments that it was quite high.
For high end road and MTB maybe not so much but in terms of volume those brands probably sell way more low end MTB/road bikes, hybrids, kids bikes, etc through the likes of Evans. Those type of buyers don't know they want a Specialized or Trek, they don't spend hours researching on line, reading reviews, etc like your average Singletrack reader might, they just go into a shop like Evans, looks at all the bikes around their price range and buy the one they like the look of.
For every S-works/high end bike sold they must sell 100+ low end bikes and the type of people buying those lower end bikes probably aren't your average Concept Store shopper.
The trouble with the big four is that they're too big to fail. We presently have the cosy arrangement where clients are shuffled along the merry-go-round every few years, why would anyone rock the boat? The industry could not withstand the fallout from another Anderson scandal so it wouldn't be too surprising if there is a collective reluctance to look closely.
Given our discussion about Sports Direct, it's ironic that the accountancies themselves are employing similar business practices: audit work is peaky, with a glut either at calendar or financial year-end, so they have responded by cutting staff and contracting out as necessary. My understanding is that much of this work is performed overseas in lower-wage economies, leading to situations where accounts are signed off without the auditors having set foot in the business they're supposed to be inspecting.
Those type of buyers don’t know they want a Specialized or Trek, they don’t spend hours researching on line, reading reviews, etc like your average Singletrack reader might, they just go into a shop like Evans, looks at all the bikes around their price range and buy the one they like the look of.
Correct - the majority of customers don't even know what brand bike they have, never mind the exact model or year. They went in and bought a blue bike because they wanted something to potter round the local park / get fit / go to work / go to the pub*
The shop had something that vaguely seemed to fit, looked nice and that they could ride out of the shop. That's all that most people want.
On a good week, we could shift 15 Specialized Rockhoppers (£399 - £599 range) out of a single store (this is going back to the early 2000's). However the weeks that you'd sell any single bike at £2000 or more were significantly more rare.
*delete as applicable
Not read any of the posts, but I imagine that will be the end of the Evan’s Sportive series, which is a shame.
trailbreak.co.uk - Just saying. Especially as it was our trail ride series that Evans used to sponsor before they started doing their own, and our business they tried to poach when they did.
Evans sponsored our events for a few years and it worked quite well all round at first, while they were still a small chain, until their management (the same management that started off the round of greedy expansion and VC sell offs that have bought them to this current sorry mess) became more and more arrogant, dictatorial and demanding and started confusing sponsorship with ownership. Eventually they just went behind our backs, set up a carbon copy of our event structure while keeping us hanging on for a renewal, before dumping us at the last possible minute with no warning. They even went to the extent of employing a bloke who used to work for us, for the illusion of “continuity”, and as we found out from long term customers of ours, were telling anyone who’d listen at their events that theirs were the ‘original’ and we weren’t running events any more (which was a total lie).
So whatever anyone says about Mike Ashley, I find it hard to imagine he’s any worse the shower who used to run Evans. I have every sympathy for any shop staff, customers or suppliers who stand to lose out over this, but as far as Evans as a company go, my sympathy level is running at absolute zero.
On a good week, we could shift 15 Specialized Rockhoppers (£399 – £599 range) out of a single store (this is going back to the early 2000’s). However the weeks that you’d sell any single bike at £2000 or more were significantly more rare.
And if you're saying that's a good week, whilst I appreciate those won't be their only sales what's the average margin per bike .... £100????
It's not like they're billing £20k a week, then take out staffing, rent, rates, heat, light ..... etc, etc etc .... not surprising it's a business that struggled to survive as the online competition intensified.
It was inevitable IMHO. Many of us get all misty eyes about the LBS and then go and shop online at Wiggle or CRC.
Physically retail is dead in the water except for things like Supermarkets.
The future is online.
Physically retail is dead in the water except for things like Supermarkets.
The future is online.
As discussed previously on this thread it really isn't the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can't fix my bike still applies to a lot of people.
An update of sorts for those waiting on an order. Got a phone call and an email saying the bike was at the story being built up and would be ready for collection shortly. I didn't take the call otherwise I would have been straight around and taken the bike in it's box! Hopefully everyone's orders will be fulfilled.
OT for @cakeandcheese - not sure which scheme you are using but I *think* the eCertificate for cyclescheme.co.uk can actually be used anywhere (..that accepts cyclescheme).
In any case, it's not like Evans are going to stop selling bikes although it might be worth waiting till it's clear orders are being processed as normal and your local store isn't about to close.
An update of sorts for those waiting on an order. Got a phone call and an email saying the bike was at the story being built up and would be ready for collection shortly. I didn’t take the call otherwise I would have been straight around and taken the bike in it’s box! Hopefully everyone’s orders will be fulfilled.
They could be stalling. If I were you I'd go around and demand it built or not.
"Physically retail is dead in the water except for things like Supermarkets.
The future is online."
No it isn't.
"As discussed previously on this thread it really isn’t the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can’t fix my bike still applies to a lot of people."
Yep, just got to find the right LBS. Mine is great at not only getting what I want/need but will offer advice on alternatives if they don't have it or don't stock the brand I'm after. They also tend to reward me for regular custom by discounting (without me asking!) to the level of CRC and sometimes below it. When they don't I never query it as I know they might not have the margin on that item to do so or whatever. I always expect to pay the sticker price and if they charge less it's a bonus. They've also helped me out assessing my bike after I was doored a few years ago. They also sell a lot of bikes and not just in the budget range either. I don't think they even have a bike below £500 on the shop floor! Always busy, has a decent online presence for bike sales and is a welcoming place to go to, never seen or heard them belittle a newbie for not knowing something basic for example. All of this is basics of retail, any shop can do it if they want to and it's all things you won't get online.
benpinnick
It was always going to be a pre-packaged administration I think. ‘Rescue Plan’ and Sale are not two words that go together otherwise. Unfortunately the company was a basket case with debts massively outstripping its assets (as per 2017 accounts)"
Evans' biggest creditor is also its owner, the private equity company ECI Partners. When ECI bought Evans they transferred £52m of the £80.4m purchase price immediately back to Evans and charged 12% interest on that "loan". Halfords actually tried to buy Evans at the same time but were shut out by the previous owners- also a private equity company.
So, essentially they bought Evans with Evans own money then charged punitive interest on it into the bargain. I've not seen calculations yet of whether - like Maplin- Evans was actually solvent without those "repayments", considering the size of the loan and the repayment structure I suspect it was though.
<edit- had a look and this isn't a proper analysis but yep, the annual cost of those repayments seems to be all that made them lossmaking>
Don't be ridiculous. Evans has been bought out of administration as a going concern. They are hardly going to stiff the very customers that will keep them afloat. The website is still trading as normal - are all the hundreds of customers buying stuff right now who don't know about this going to be ripped off - of course not.
If I had a bike on order I wouldn't be overly worried though a few may not get them and get a refund if there is a supply chain issue.
Edit: this was a reply to a post about running round to grab your bike not to Northwind. I agree with him that the way its been done is very suspect and over the long term Evans will not survive
Just got this email through from Evans' affiliate program team at Affiliate Window (I do pretty well out of affiliate/performance marketing as a side thing) - doesn't bode well if they are cutting off marketing channels and not guaranteeing to pay commissions. I've made sure I have no Evans links either current or retrospective (old links are being replaced with CRC) on any of my channels. I'll be ****ed if they're getting a single lead from me and not paying out my commissions for them:
Dear Publisher,
You may have read in the press that Evans Cycles has been acquired by Sports Direct after going into administration.
We are yet to receive confirmation that any trade before or after administration can be paid, so publishers are advised to proceed at their own risk in regards to continuing to send traffic to the site. Awin have decided to keep the programme open as there is some chance Evans Cycles (Sports Direct) will choose to honour sales post administration; however trade prior to this date will need to go through the usual process.
We are working with Evans Cycles and Sports Direct to clarify this position as soon as possible and we will keep you informed.
Kind regards
The Evans Cycles Affiliate Team
==============================<wbr />==============================<wbr />==
You have received this email because you are a member of
Evans Cycles affiliate program
Don’t be ridiculous. Evans has been bought out of administration as a going concern. They are hardly going to stiff the very customers that will keep them afloat.
PMSL
https://twitter.com/PhilHunt91/status/1046047762708598785/photo/1
Not like there is a template to look at....
“As discussed previously on this thread it really isn’t the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can’t fix my bike still applies to a lot of people.”
Maybe if you want to run a tiny LBS, earn the equivalent of a minimum wage and have all the hassle and responsibility of owning a small business.
It's been discussed many times that people expect to get bikes fixed almost for free.
The snobbery on this thread is quite spectacular and I'm sure all those turning up their noses have never bought any far east mass produced sportswear, or shopped at Amazon, CRC, On One, any other mass discounter etc
Maybe if you want to run a tiny LBS, earn the equivalent of a minimum wage and have all the hassle and responsibility of owning a small business.
It’s been discussed many times that people expect to get bikes fixed almost for free.
Nope decent sized ones making money. Just need to know where to find them and how to do business. Just because you don't look for them doesn't mean they don't exist.
The snobbery on this thread is quite spectacular
Why because we can see mis management and greed that is about to rip apart another part of the high street?
When ECI bought Evans they transferred £52m of the £80.4m purchase price immediately back to Evans and charged 12% interest on that “loan”.
I'm surprised this post hoc accounting trick is legal. I guess they call the £52 m an asset or something since they value the business based on the sale price? Semi-criminal if you ask me?
I’m surprised this post hoc accounting trick is legal. I guess they call the £52 m an asset or something since they value the business based on the sale price? Semi-criminal if you ask me?
Normal practice. I'm sure the Glazers did that to Man U years ago. It certainly feels like something which should be illegal
Why because we can see mis management and greed that is about to rip apart another part of the high street?
The same greed that led Tesco etc to decimate the highstreet. The PSAs about bargains 5-10s at Go Outdoors but no mention of any deals at an Lbs etc.
Unless folk are growing their own food and knitting their own clothing out of wool from their own sheep then we're all part of the same hypocrisy. Let's stop pretending otherwise
“As discussed previously on this thread it really isn’t the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can’t fix my bike still applies to a lot of people.”
Yep, just got to find the right LBS. Mine is great at not only getting what I want/need but will offer advice on alternatives if they don’t have it or don’t stock the brand I’m after. They also tend to reward me for regular custom by discounting (without me asking!) to the level of CRC and sometimes below it. When they don’t I never query it as I know they might not have the margin on that item to do so or whatever. I always expect to pay the sticker price and if they charge less it’s a bonus. They’ve also helped me out assessing my bike after I was doored a few years ago. They also sell a lot of bikes and not just in the budget range either. I don’t think they even have a bike below £500 on the shop floor! Always busy, has a decent online presence for bike sales and is a welcoming place to go to, never seen or heard them belittle a newbie for not knowing something basic for example. All of this is basics of retail, any shop can do it if they want to and it’s all things you won’t get online.
Tell us who they are, they could probably do with the positive publicity
Gift cards are still being accepted for online orders, at least they were earlier today. I ordered a bike online this morning knowing that it was in stock at the store, I paid for it with a gift card and picked the bike up from the store this evening. Very relived as the gift card was for £2000.
Jesus! Reuters are reporting that SD bought Evans for just eight million! Talk about a fire sale!
"Evans has been bought out of administration as a going concern"
Has it?
Mr Ashley's statement to the press implies that it wasn't. Companies House implies that something has changed but not what.
It looks a lot like for the moment Evans is operating as if it has been bought as a going concern but hasn't actually. And that, whilst good for customers short-term because their orders and vouchers are being honoured, stores up problems long-term because eventually some of the creditors won't get paid.
Well it could have been eight quid, or two, like BHS was sold for. But I am guessing there isn't a pension scheme problem there.
There will need to be further injections of cash to keep the business going. It will be interesting to see if Ashley can make it worth the investment.
I’m no business analyst but my intuition tells me Evans are F***ed !! Feel sorry for the staff getting shafted before Christmas 🙁