Rapha has reported losses of nearly £20 million in the six months up to January 2018, since being sold to to the grandchildren of Walmart founder, Sam Walton.
An audited financial statement submitted to Companies House showed that in the six month period to January this year, Rapha reported a turnover of £42.2 million and posted a pre-tax loss of nearly £20 million.
In comparison, the brand saw a sales rise of 37.5% to £67.1 million in the same period in 2017 under its previous owners, alongside profits of £1.4 million.
According to a Rapha spokesperson, a change in strategy is to blame for the job cuts, of which the brand claimed there were only 15: “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.”
The figures for the first six months of 2018 will be eagerly awaited by many, to see if Rapha has turned a corner, or continues to report losses.
The venture capital owners Steuart and Tom Walton, the grandsons of the supermarket founder, bought the business through their RZC Investments business. At the time a bidding war was believed to have taken place against the likes of LVMH, which forged ties with Pinarello at the end of 2016. As revealed by CI.N, Pinarello has now similarly altered its market approach.