UK’s Evans Looking for Buyer
LONDON, UK – High street cycle retailer Evans was seeking GBP10 million (11.2m euros) in funds for a financial restructuring as Bike Europe recently reported. UK media reports now suggest that the firm, which has a strong network of 60 stores, has moved on to seek a buyer for the company. Evans sells some well-respected, premium brands such as Brompton and also has a host of own-brand creations, such as FWE clothing and accessories as well as Pinnacle bikes.
The BBC reports that Evans’ financial advisers, PricewaterhouseCoopers, have been in talks with a number of potential buyers. The Guardian states such potential buyers include Halfords, Cycle Surgery, JD Sports (which owns GoOutdoors) and Sports Direct which considered a bid for Evans in 2015. Potential bidders have been asked to table final takeover proposals by the end of the last week in September, Sky News reported.
Cash injection quest appears to falter
Despite its current difficulties the BBC also reports that Evans “Is not thought to be considering a company voluntary arrangement (CVA) – a form of rescue deal that would allow it to shut stores and slash rents without going bust” – an insolvency process that has been used recently by some major high street retailers experiencing similar difficulties.
Factors cited in contributing towards what is clearly a tough bricks and mortar cycle retail environment in the UK include online competition, high rents, the expansion of ‘out of town’ outdoor chains such as Decathlon and Go Outdoors and an increase in the minimum wage.