Dawes and Claud Butler will merge, becoming Tandem Group Cycles, managing director Steve Grant has revealed.
“Although Claud Butler and Dawes have worked closely together for some time, with immediate effect, the two businesses will be merged and will be known as Tandem Group Cycles,” Said Grant.
In its latest trading update, Tandem offered that oversupply too is a contributing factor to under performance: “As we have previously reported it has been a particularly challenging period for the UK leisure cycling market. This has further been impacted by significant promotional activity by certain large competitors over recent months and an oversupply of product in the market.”
Of all the markets the group is engaged within, cycling has become the least profitable.
The merger, says Tandem, will see the business continue to invest in its Scunthorpe warehousing, bringing distribution of the bike portfolio under one roof. Sales, product development and office functions will remain in Birmingham.
Senior product and marketing manager Gary Conway said of the news: “I see today’s news as a fresh lease of life for Tandem Group Cycles. For a while now we’ve been upholding our historical business model of two separate brands, having two separate teams and all the costs that come with it. At times, those two brands have also been seen as close competition with one another which is of course, counter-productive for us. By consolidating our workforce, we will hopefully have a much more effective team that can react quicker to current trends and that can steer the brands in the right directions to prosper.”
Sales director of Tandem Group Cycles Julie Hayward said: “The new Tandem Group Cycles will be completely dedicated to developing its business in the independent sector. Although we have restructured some of our operations as part of the changes we believe this will enable us to deliver a strong and compelling proposition for the future.”
This change will result in a more streamlined and efficient operation, says the group, which remains “completely focused on supporting the independent sector”
Development of the Claud Butler, Dawes and Academy brands will be complemented by new Squish junior and entry-level British Eagle ranges. These will be augmented by our Pulse parts and accessories range of products.
Customers of the business and suppliers will be briefed on any further changes in the coming weeks.