Evans Cycles is looking to restructure the business amid falling profits

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Ross
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Evans Cycles is looking to restructure the business amid falling profits

Postby Ross » Sat Sep 08, 2018 8:35 am

https://www.bikebiz.com/business/evans-in-cash-talks

The owner of Evans Cycles is looking to restructure the business amid falling profits at the 60-store chain. ECI Partners is seeking £10 million to keep the business afloat, reports Sky News.

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MichaelB
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Re: Evans Cycles is looking to restructure the business amid falling profits

Postby MichaelB » Mon Sep 10, 2018 11:02 am

Will be interesting to see what happens.

Used to use Evans a bit, but seems that more of their stuff is 'not shipped to Aus', so haven't bought from them for a while

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Re: Evans Cycles is looking to restructure the business amid falling profits

Postby jaseyjase » Mon Sep 10, 2018 11:24 am

MichaelB wrote:Will be interesting to see what happens.

Used to use Evans a bit, but seems that more of their stuff is 'not shipped to Aus', so haven't bought from them for a while


Probably dosnt help that stopped shipping to Aus from the 14th of June!

i used them, mainly because at times they stocked brands/parts that other retailers didnt.

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Re: Evans Cycles is looking to restructure the business amid falling profits

Postby nezumi » Mon Sep 10, 2018 7:50 pm

Clearly this is all the result of the loss of the Aus market. They should adjust their systems to collect GST, and then they'd be fine! :P
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Re: Evans Cycles is looking to restructure the business amid falling profits

Postby AUbicycles » Fri Sep 14, 2018 5:57 am

They missed the chance to be a serious player on the Australian market. Having physical retailers affects the focus and it is fair that 'profits alone' shouldn't be the sole motivator. Shipping to Australia is a solvable problem for a big business and I think new opportunities for Australian customers are with smaller business that don't reach the threshold.

But the law also came at a time when Australian online business was being competitive anyway.

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Re: Evans Cycles is looking to restructure the business amid falling profits

Postby AUbicycles » Wed Sep 26, 2018 3:56 pm

More reporting of the struggling Evans Cycles chain - a rescue deal is necessary to keep them afloat. Continuing turbulent times ahead for Evans Cycles who are fairly big in the UK market.

https://www.bbc.com/news/business-45595144

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Ross
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Re: Evans Cycles is looking to restructure the business amid falling profits

Postby Ross » Thu Sep 27, 2018 8:01 pm

Halfords rides to rescue of struggling rival Evans Cycles

https://news.sky.com/story/halfords-rid ... s-11509519

Halfords, the UK's biggest bikes retailer, is trying to ride to the rescue of Evans Cycles, the rival chain which is racing to agree a takeover that would secure its future.

Sky News has learnt that Halfords, which is listed on the London stock market, was among a number of parties which tabled indicative offers for Evans earlier this week.

Other bidders included turnaround investors, with Evans requiring more than £10m in fresh capital to see it through the next few months of trading.

The urgent auction of Evans, which was founded nearly a century ago, underlines the risk of another prominent retailer being consigned to the list of names which have been plunged into crisis this year amid a toxic high street trading environment.

Like many high street retailers, Evans has slipped into the red because of a combination of rising costs and challenging trading conditions.

The chain‎ trades from just over 60 stores across the UK and traces its history to 1921, when the first FW Evans Cycles shop opened in south-east London.

The company, which is owned by the private equity firm ECI Partners, is being advised by PricewaterhouseCoopers (PwC), while AlixPartners is advising the retailer's lenders.

It has been backed by a number of investment firms, including Active Private Equity‎, which sold it to ECi in 2015 for an undisclosed sum.

ECI is not expected to be part of any rescue deal.

The current talks with its lenders is not the first time that Evans has flirted with financial difficulty.

In 2016, it held similar talks with its banks amid a slowdown in bicycle sales.

This year, it parted company with Andy King, its chief executive for less than two years, and replaced him on an interim basis with Alan Fort.

Evans is the latest in a long series of major retail names to be forced into talks with its lenders as the industry contends with one of the most brutal trading environments for decades

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