UK High Street Chain Evans Looking for 10 Million Restructuring Funds
LONDON, UK – Media in the UK are reporting that the 60 stores strong UK high street bicycle retailer Evans Cycles has hired a financial restructuring firm and that a financial lifeline of GBP 10 million (11.2m euro) borrowing is required. This comes on the back of Evans Cycles’ latest accounts showing pre-tax losses of GBP 2.5 million (2.8m euro) in the year to October 28, 2017 (despite sales edging up to GBP 138.8 million – 155.7m euro), following losses of GBP 5.8 million (5.8m euro) a year prior.
PricewaterhouseCoopers are believed to be advising on the restructuring process and AlixPartners advising the firm’s primary lenders, HSBC and AIB.
Slide from profit to loss
In 2015 venture capitalists ECI Partners bought the Evans chain for around GBP 80 million (90m euro) but the retailer has travelled down a rocky road since. There has been talk of increased lending from banks, a slide from profit to loss and a steady turnover of Chief Execs. There have been some store openings and refits, though the innovative Dutch-style Cyclepoint repair and storage hub outside Leeds railway station which Evans operated closed in April this year.
Tough bricks and mortar retail environment
There has been a steady stream of bad financial news on some very large UK bricks and mortars stores outside the bike industry over recent months – names such as Maplins and Toys ‘R’ Us will be familiar to UK consumers for the wrong reasons – so perhaps Evans latest news is no surprise, as the UK bricks and mortar retail environment continues to be a very tough one, whatever size of retailer you are.