Evans Cycles hires financial restructuring advisers

SkyNews reported over the weekend that Evans Cycles has hired a financial restructuring firm in a bid to revitalise the struggling business.

Like many others in the cycle trade, Evans Cycles has experienced a rocky start to 2018, with the July financials showing further losses, albeit at a slowed rate over the period prior.

Owned by ECI Partners since 2015, Sky reports that funding to the tune of around £10 million may be required to revitalise the business.

PricewaterhouseCoopers is now believed to be advising on the restructuring process, while AlixPartners is advising the firm’s primary lenders, HSBC and AIB.

The financial difficulty of the chain has been ongoing for some time, with CI.N learning of stalled supply from key suppliers to the chain earlier this year.

Back in July of 2016, Evans held talks with banks to increase lending on the back of a poor start to the year, at the time blamed on inclement weather.

Alan Fort took over from Andy King as Evans’ chief executive in April of this year. King, who had just 17 months at the helm, replaced Nick Wilkinson who was similarly let go after two years in which the business saw an operating profit decline of 45%.

Evans Cycles operates a chain of just north of 60 branches across England, Scotland and Wales.