Specialized acquires UK retail chain Rutland Cycling

Specialized UK has acquired the Rutland Cycling bicycle retail chain, which has 12 stores in the Midlands, a noteworthy online presence and is currently home to numerous top-tier bike brands, CyclingIndustry.News has learned.

Simon Homer, Managing Director of Specialized UK said: “Bringing Rutland into the Specialized family provides some exciting opportunities for both businesses. Immediately, we will have to make some decisions to secure a sustainable future for Rutland and this may involve a restructuring of its network and cost base. We will do this with complete clarity and transparency, and with full consideration and consultation for those who may be affected. As we navigate these changes, we will be investing to ensure we strengthen the rider experience, demonstrating our ongoing commitment to serving the rider and building a resilient and modern ecosystem.

“Specialized will be working very closely with the Rutland team as ownership transfers across. Riders will begin to see some changes to Rutland’s stores as supplier relationships are finalised, but both parties remain committed to ensuring minimal disruption to service.

“This is the latest announcement in Specialized’s expanding ecosystem. This strategy is focused on better serving riders; when, where, and how they want. Today’s news provides yet more ways for riders to interact with the Specialized brand, alongside their network of independent retailers, online partners and via specialized.com.”

Having acquired Infinity Cycles earlier this year, an acceleration of the store buying trend would mirror the very same movements made by top tier brands in the USA, with this the largest such transaction by a brand buying a retail empire to date.

Most notably Trek, Specialized and the PON group have all moved to make store buyouts with increased frequency, often resulting in knocking rivals out of key premises. In the UK, Trek is currently hiring for new brand store openings. The trend mirrors even as far afield as Australia where Specialized has just bought its first store.

Set up in the early 80s and passed on to the second generation of family ownership, the Rutland Cycling business expanded rapidly, attracting £2.8 million in British Growth Fund cash in March of 2014. This deal made the fund the largest shareholder in the retail business.

The transaction represents a full exit for the British Growth Fund.

More recently the business has seen ups and downs up to and throughout the pandemic. In the 18 months to July 26th, 2020 the business recorded a loss of £1,424,725, though rebounded on the well reported Covid-19 ‘bike boom’ to profit in 2021 at £574,815.

Somewhat foreboding the takeover, the Nottingham store (pictured lead) opened in 2018 with a Specialized logo prominently above the door thanks to an in-store brand concept area on the ground floor. Two of the stores – Cambridge and the original outlet in Rutland – carry Giant logos prominently above the door and are destinations for the rival brand.

Rutland Cycling is currently a stockist to bike brands including Whyte, Cannondale, Santa Cruz, Scott, Frog Bikes, Bianchi, Cube, Giant and Liv.

Incorporated in December of 2021 at Companies House, Specialized set up a new private limited company under the Specialized UK Retail Limited banner. Current UK Managing Director Simon Homer is one of three directors of the new company, alongside European Financial Controller Martin Wyrsch.