Evans Cycles to close stores despite ‘almost all profitable’

Evans Cycles is set for store closures despite a recent administrators proposals document by accountancy firm PricewaterhouseCoopers (PwC) claiming “almost all the stores were profitable”.

In the document, PwC found that the company’s financial woes mainly stemmed from being “burdened” by costs at its head office.

Last month it was announced that the cycle retailer had been rescued from administration by Mike Ashley’s Sports Direct. At the time of the acquisition, Ashley claimed that “in order to save the business” he believed the firm would “be able to keep 50% of stores open in the future”. Evans Cycles has 62 stores across the UK, with the potential closure of half of its stores threatening over 400 jobs.

Evans Cycles became the second retailer rescued by Ashley this year after his firm purchased House of Fraser for £90m shortly after it had entered administration. At the time of the acquisition Ashley pledged to turn the department store chain into the “Harrods of the high street”.

Retail Sector has contacted Sports Direct for comment.