Sports Direct buys ailing cycle retailer in pre-pack administration
Sports Direct has emerged as the buyer of Evans Cycles after Halfords pulled out of talks to buy the troubled retailer. Mike Ashley’s burgeoning retail empire snapped up the brand in a pre-pack administration through PWC, and just as it did with House of Fraser it immediately announced plans to halve the store portfolio and turn the screw on landlords of the remaining stores.
Evans Cycles currently operates 62 stores in the UK and employs 1300 staff. Ashley 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 Sports Direct’s property adviser CBRE 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.”