Raleigh UK resets as owner labels it “unsustainable in current form”, exiting P&A

Accell UK has revealed that Raleigh UK’s parts and accessories (P&A) business is to close in drastic action that will also see it cease its warehouse operations.

A consultation is now underway with Raleigh UK emailing partners and bike shops yesterday evening (8 November 2023) to make them aware. Jobs at the business, one of the best known bicycle brands of all, are included as part of that consultation, which will take place over the next thirty days.

Raleigh UK owner Accell, owned by a consortium headed by global investment firm KKR, says it is the European market leader in eBikes and the second largest in bicycle P&A. Its portfolio includes significant names like Haibike, Winora, Ghost, Batavus, Lapierre, Babbo and Sparta. With significant European infrastructure in place, the group said there was an opportunity to “remove duplication across business functions and harness the collective power and support of the organisation.”

The email went on to detail how the UK’s P&A business has always been and is currently highly competitive, referencing persistent market conditions that are facing some businesses – like WiggleCRC – leading to some exiting the market. It added: “The proposal includes the difficult decision to close the Parts & Accessories business in the UK.” A logistics provider will be used as it closes its warehouse operations. A UK presence will be retained in the Nottingham area – Raleigh’s historic home. It was established in the city in 1887 and after frame production ceased in the UK at the turn of the (21st) century, Raleigh moved to Eastwood, former coal mining town a few miles from the city.

While not including warehousing, Accell UK’s HQ will likely retain online and offline sales, customer service, marketing and finance.

Accell Group’s dealer email said: “The UK market is currently challenging with pressures on costs, supply chains and inflation impacting the business. In light of this, Accell Group has decided that the current strategy and organisational set up is not sustainable in its current form. Therefore, the Group has created a proposal to change how we operate in the UK.

“The much-loved Raleigh brand has always been an integral part of the UK company identity and will continue as such, strengthening our position as a market leader alongside Haibike, Lapierre, and Babboe.”