Outdoor & Cycle Concepts, the owner of Cycle Surgery, has proposed a company voluntary arrangement (CVA) to its creditors which would see it close loss-making stores to reduce rental costs.
The firm – which also owns Snow & Rock, Runners Need and Cotswold Outdoor – has 115 stores across the UK and Ireland. Cycling Industry News reports that 19 of these are branches of Cycle Surgery.
Bloomberg reports that Outdoor & Cycle Concepts, which is controlled by private equity firm PAI Partners, is citing declining footfall on shopping streets as a major reason for the proposal.
Debenhams recently announced similar plans as part of its CVA.
“We have started to engage with key stakeholders, suppliers and property landlords to explore all options,” said managing director, Jose Finch.
A vote on the CVA is scheduled for May 13.
Last year Evans Cycles entered administration before private equity firm ECI Partners sold the business to Sports Direct.
In October, Sports Direct said it would have to shut around half of the 62 stores. It was later revealed that nearly all of them were trading profitably when the sale went through.
Administrators said the firm was “burdened” by fixed costs associated with its head office.