British outdoor sports retailer Alpkit has entered administration but is hopeful “jobs will be saved, our stores will remain open, and all customer orders fulfilled”, the company now “in advanced talks” with a potential new owner and investment partner.
In a statement sent to shareholders on Monday evening, Alpkit chief executive David Hanney said the business, best known for its outdoor sporting goods and bike brand Sonder, had “faced incredible challenges over the last three years” and “these pressures have created an insurmountable mountain for us to climb”.
road.cc has seen the email and a copy of the statement, Hanney telling shareholders it is “an extremely sad day for everyone” and there are “hard choices we must take to ensure Alpkit continues”.
It was sent to shareholders who invested in the business via Crowdcube, Alpkit having made headlines in 2020 when its crowdfunding raised £1.5m in less than an hour.
Now, citing the “incredible challenges” that have hit the business over the past three years, Alpkit chief executive Hanney said “rapid cost inflation” and a “challenging market environment” had combined with “new trade barriers”, a “rising weight of interest rates and recovery loan repayments” to lead to the situation where it now needs to enter administration.
“While we have made huge progress, and came incredibly close to a successful turnaround, my board recognises that these pressures have created an insurmountable mountain for us to climb as we currently stand,” Hanney said.
“It is an extremely sad day for everyone at Alpkit, and for us co-founders in particular. Today, we are confirming that the board has accepted that we must place Alpkit into administration. We have applied to the courts to start that process. It is hugely regrettable, as unfortunately, this means the value in your shares is lost.
“As the main shareholder and chief executive, I carry the weight of this personally. Under my leadership, we have made mistakes. But overall, we have done so much more right. Alpkit was founded on friendship. One of the personal pleasures of this journey — which makes this decision so much harder — is knowing that behind every transaction is a human relationship. People we know, we trust, and we enjoy doing business with. To us, you have always been far more than lines and numbers on a chart.
“Alpkit has been a lifetime’s work with so many highs: award-winning products, industry firsts, and the honour of being named Outdoor Brand of the Year just this past December. Throughout this time, your support has been overwhelming. You have inspired and energised us with your guidance, your product feedback, and your time spent with us at AGMs, Big Shakeouts, and on our gravel rides.”
The statement ended by confirming that while Alpkit has entered administration, talks are at an “advanced” stage with a potential new owner and investment partner. It is hoped a swift purchase can save jobs, keep retail premises open and see all orders fulfilled.
Hanney said he “expects to share news with you shortly”. road.cc contacted Alpkit for any further updates since last night, but had not heard back at the time of publication.
“Everything is in place to complete the deal,” Hanney continued. “We expect that all jobs will be saved, our stores will remain open, and all customer orders will be fulfilled. The Alpine Bond remains strong. Our pipeline of new products is as exciting as ever. We remain here to help you ‘Go Nice Places, Do Good Things’.
“In doing so, we are doing something rare. Every shareholder who joined us through either of our crowdfunding campaigns will be given shares in the new company. This is not just a commitment from the team here; it demonstrates how well-aligned our new investor is with each and every one of you. You invested in us, and although that original business is lost, we want you with us with a stake in our future.”
Documents posted on Companies House point to the challenges Alpkit has faced in recent years. Its most recent accounts, for the year to 31 October 2024, show a drop in customers and that the business posted consecutive million-pound losses in 2023 and 2024. In 2024 the losses deepened to £1.4m from £1.1m the year before, even with turnover rising slightly to north of £15m.
While not purely a cycling business, even if Alpkit owns the popular brand Sonder Bikes and produces plenty of cycling kit, bags and accessories, it is the latest episode in the long-running saga of doom and gloom that the bike industry has faced since the Covid pandemic.
Last week, we reported that Canyon had axed 320 jobs, the move following a 2025 which saw the direct-to-consumer bike brand’s sales plummet amid its parent company reducing the business’s value by 43% and confirming “efficiency measures”.
At the start of January, Rapha announced it was to shut its Manchester clubhouse and half of its American branches, CEO Fran Millar saying the “painful decision” formed part of a host of changes “to bring greater focus” following eight straight years in the red.
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That announcement came the day after multiple redundancies were confirmed at Endura, as the troubled cycling apparel brand is set to leave Scotland for London.
6 thoughts on ““An extremely sad day”: Sonder Bikes’ owner Alpkit enters administration but “in advanced talks” with potential new owner”
That’s a real shame – the
That’s a real shame – the Sonder Santiago was a lovely ride.
It’s always sad when another cycling company goes under, and I do hope they find a new buyer who’s able to protect as many jobs as possible.
Just curious, how is a
Just curious, how is a decision to go into administration compatible with the handing out of shares of a yet to be established new entity to a subcategory of creditors of the entity going into administration?
(Admittedly, I know nothing about the relevant UK law).
Xenophon2 wrote:
The new [potential] owners have no obligations to the former shareholders, just like they have no obligations to the former customers to meet warranty claims. They may, however, choose to make payments with their own money in order to help the business trade more easily. That is to say that it might be expedient to pay certain suppliers in order to obtain new stock or meet warranty claims in order to retain the brand’s reputation. That is the new company’s choice, it is also the new company’s money and so is outside the insolvency process. In the same way that Jamie Oliver used his own money to ensure that the employees of his companies were paid after the administration, it was his money and he can do as he pleases with it. The simple answer to your question is that it is a transaction by an entity which is not subject to the insolvency proceedings and they can do what they like with their money (although in this case, it’s shares and so probably only a paper transaction). They could take a list of creditors, throw a dart at it and pay off whichever creditor it lands on, it’s their money and it’s a transaction outside the insolvency proceedings.
A real shame, I really liked
A real shame, I really liked the ethos of Alpkit and I love my Colibri. I suspect a lot of the things that made them stand out for me – real shops, helpful staff, and in particular their repair shop service – will be first on the chopping block of profitability and they’ll become just another brand that only exists online.
Im sorry there’s a whiff of
Im sorry there’s a whiff of self serving BS in the statement from the CEO.
It was what – just 12 months ago they opened their last shop and have probably doubled or tripled their store footprint in the last 3 years?
This smells of incompetent wishful thinking.
The CEO is a self serving BS
The CEO is a self serving BS master. Just like he was before he busted Planet X. Full of his own self importance while keep everyone in the dark. Suppliers were fed lie after lie about how well the company was doing. Even up until Friday last week. Staff had no idea how bad the situation was. No doubt this MF will be still making his mortgage payments and driving his expensive car.