Rapha has announced a wave of job cuts. The firm itself says 15 people are being made redundant, although The Telegraph quotes a former employee who said the number was between 60 and 70. Another insider said the figure was nearer 80.
A Rapha spokesman said: “As we entered 2018, we adjusted our trading strategy, prioritising long-term profitable growth above short-term sales. As part of this, we are simplifying certain areas of the business, in order to reduce costs, and consolidate and strengthen our position. These actions will result in the reduction of a limited number of positions in our London headquarters.”
BikeBiz reports that one of those to have left the company is head of R&D, Simon Huntsman.
The news comes after a series of uncharacteristically protracted sales over the summer. Many items have also been listed on the discount clothing website Sportpursuit.
Just over a year ago, RZC Investments, which is owned by two heirs to the Walmart fortune, bought a majority stake in the upmarket cycle clothing firm.
Speaking at the time, Rapha founder and chief executive Simon Mottram said the acquisition heralded, “the start of the next stage of our journey and is testament to the growth and potential that people see in Rapha and in cycling.
"Support from RZC Investments will allow us to further expand our active global community of cyclists, develop even better and more innovative products and services to enhance cyclists’ lives and inspire many more people to take up the World’s greatest sport."
The deal reportedly valued Rapha at £200m. At the time of the purchase, the firm’s profit sat at around £1.4m.