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MA’s willingness to trash HoF’s reputation by stiffing customers and suppliers is not a good sign.
Its a good sign that he wants to run the business, honouring those debts is what was crippling HoF and it was to be expected anyone buying anything would have done the same.
As for vouchers why after the last several years of companies going bust and offering nothing against vouchers anyone would have bought those is beyond me but, if you want to get angry against the immoral rather than the stupid, HoF and Evans could see this coming a long way off but continued to sell vouchers knowing at some point they'd be completely worthless and using the gullible public to effectively write unsecured loans to the business. If you want someone to blame for the worthless IOUs in people's wallets, blame the people who bought them first despite all the warnings and evidence it was a stupid thing to do, then blame the people who sold them, right to the end, knowing they were worthless. Don't blame the ones who happen to be trying to keep the thing at least twitching for a few more weeks.
That's not Ashley or even particularly PWC's fault*, they continued trading while expecting a £10M cash investment which would (supposedly) have made them solvent again (although for how long IDK, unless you fix the leak you can put as many buckets under the drip as you want but it won't stop)
* although iirc they got PWC in earlier to advise them before they became administrators formally so there may be a case to answer.
Continuing to trade as Evans - not sure on that, but there are lots of places that details need to be changed and I'll excuse missing a webpage if it is a genuine error.
I'm sure PWC will do quite nicely out of it, whatever happens. They always do.
Its a national scandal how the 'Big Four' have been allowed to carry on business-as-usual since the banking crisis. I think its probably safe to say it'll have been one of those lot who will have been signing off Evans previous accounts, which can't have looked too rosy. Companies don't get into this state overnight. The same as they signed off the Banks leading up to the crisis, BHS, etc, etc, etc....
It makes you wonder what you'd have to do before they actually flagged something up., instead of taking the cash and signing on the line that everything looks just peachy creamy
I don't disagree with that either....... but they are clever and I'm sure they'll have been the right side of the regulations while they took their fee.
It's a murky, yet highly regulated and organised process, if that's possible.
Better exchange my tesco vouchers then and buy something before they withdraw!
Better exchange my tesco vouchers then and buy something before they withdraw!
I'd (very much) guess they're a little different and Tesco promise to pay Evans ??p on the pound for each voucher, so risks of Evans pulling out of those is slim as it's another revenue stream. Tesco may pull out to avoid reputational damage i suppose but there's not much you could do as a business that would risk Tesco's rep that they don't already do much worse themselves so I'd be surprised by that.
(If anything I'd imagine tesco are fairly happy as they won't have paid any of the last 90-120days of voucher redemptions yet and now probably won't have to)
Jon - you're obviously very knowledgable on the subject. How do you think it is that the big four are allowed to continuously sign off the accounts for companies that fold, often with huge black holes in their accounts? They seem to do so with impunity, yet it happens time after time after time
"Because canondale, bmc, pinnacle, cube, Scott have so many other options to penetrate the mass retail market"
If they get pissed off by MA's practices at Evans they'll move over to a mix of LBS and smaller chains like Leisure Lakes to cover all the areas. Any bike company with any nous whatsoever will want to avoid going through the pain GT and Saracen went through 20-odd years ago when they agreed to make budget versions of popular models for Halfords. Even just having large amounts of older stock being massively reduced can do enough damage for a few years. That damage to the brand can be so hard to reverse they could leave the UK. As Ben said earlier, a lot of the independents and small chains will be waiting for the fallout so that they can hoover up the better staff, bike brands and customers.
MA and co are just the hyena's who tear into the corpse.
The whole system stinks and its proof (if anymore were needed) that capitalism is completely broken.
I really don't know that the SD model works for Evans, yes SD has the likes of Nike etc. in their stores (Even Zipp wheels) but with that type of product you can say to the manufacturer, make me a tracksuit with your logos at this price point and they'll go do it if you're willing to buy 10,000 of them. Or you can buy up 10 brands and have one factory make them all just slightly different for a fraction of the cost of a single small run, however you can't say to specialized make something at a lower cost, without it having a lower value, as up to 75% of the bikes' inherent value is what is hanging on it, and they (the brand) usually don't make that.
Planet X has been on and off successful at that model, but their main advantage has been low costs ultimately, driven by no retail costs. Even if SD close the smallest 50% of stores they still have a store network that doesn't fit the pile it high sell it cheap mantra, so it will be interesting to see what direction it takes.
Jon – you’re obviously very knowledgable on the subject. How do you think it is that the big four are allowed to continuously sign off the accounts for companies that fold, often with huge black holes in their accounts? They seem to do so with impunity, yet it happens time after time after time
Google: KPMG Conviviality Retail.
Fastest corporate collapse in British history. The core reason (apart from Diana Hunter going on an ego trip) was terrible accounting, yet KPMG had signed their accounts off. KPMG are currently under investigation by the industry watchdog, I think
Why aren’t the whingers on here decrying the venture capitalists who have driven Evans onto the rocks with excessive debt?
This in spades. And its happening everywhere.
Why aren’t the whingers on here decrying the venture capitalists who have driven Evans onto the rocks with excessive debt?
They all thought Evans was great whilst being run at a loss as they could buy parts cheap.
@ B.A.Nana Conviviality was not such a great example as that was a rarer (but not that rare unfortunately) example of a company being brought to its knees by appalling management, hubris and as you said, ego. A good old fashioned story of greed and stupidity - sure bad accounting didn't help and any half competent (or non criminal) auditor would have sniffed out the problems immediately
Was just about to say the same thing. VC companies are speculative parasites. Buy a business, strip it, drive unsustainable short term profit to put lipstick on the pig and then sell it on. The only good news here is that they bought for about £80m and have sold it for about £20m.
Who wins: Mike Ashley (at least until consumers start rejecting his new empire of brands).
Who loses: Sadly Evans staff (say what you will about their service, it's a sad day - nobody got up in the morning and set off to work there wanting to be second rate), definitely consumers (less choice = a bigger monopoly for Wiggle/CRC) and the High Street (who knows what that will look like in 10 years time?!).
I was not a regular at Evans, but they did drive availability and accessibility to get more people riding which can only be a good thing.
I've never bought a damn thing from Evans as i'm not a fan of massive chains of stores destroying LBS's, so they'll hardly miss my business, but this is definitely another store to add to the list i wont spend a pound at. Anything that MA touches is off limits to me (though the state of Geordie FC makes me chuckle inside). I am lucky in that i have a bloody great LBS in Westbrook Cycles in Stokesley who i absolutely try to give my hard earned money to (actually its an hours drive away but they're fantastic and always offer a discount or deal of some sort). A shame that people will lose jobs in order that he has another 0 in his bank account...but isnt it what Evans have been doing to LBS's for years?
Two further thoughts...
SD-Evans will be aiming at Halfords rather than LBSs now I imagine.
What does this mean for PX's ambition to be the SD of bikes?
Don't wish to say I told you so ..but I did earlier in the thread ..
God I detest that man ..yet another store / chain to boycott ..
I feel sorry for the Evans staff, seeing how SD staff get treated...
@ B.A.Nana Conviviality was not such a great example
Well, my repertoire is fairly limited of this sort of thing. 🙂 However, I thought it was a good example of what must have been obviously a complete accounting mess, yet still KPMG signed it off. PwC who came in to advise CVR (and eventually manage their Admin) are quoted as saying they were severely hampered by poor accounts that KPMG had signed off.
As administrators from PricewaterhouseCoopers (PwC) start to pick through the remains, they are understood to be severely hampered by poor record-keeping – in line with the chaotic picture of Conviviality that has emerged during its decline.
Interesting to note that the man from KPMG (yes them again) who signed off the Carillion accounts has been struck off from auditing accounts and had a hefty personal fine (that he has to pay himself, he can't get KPMG to pay it on his behalf...) so it may make individuals a little more cautious but the systemic problems haven't been solved
Not read any of the posts, but I imagine that will be the end of the Evan's Sportive series, which is a shame.
Doesn’t anybody else think that these acquisitions by Mike Ashley are just next years, or possibly the year afters BHS? Milked until they go bust, probably with a huge hole in their pension fund, with him having sailed off to Monaco with the loot?
He just seems like the new Phillip Green to me
Jon – you’re obviously very knowledgable on the subject. How do you think it is that the big four are allowed to continuously sign off the accounts for companies that fold, often with huge black holes in their accounts? They seem to do so with impunity, yet it happens time after time after time
I wouldn't say that, but I read and I've been involved in 2 prepacks in my time so have an idea what goes on with them.
But to hazard a 'guess' (you decide if it's educated or not 😉 )
1/ an auditor can only audit what he is shown; if CFO's, etc. are deliberately/maliciously hiding stuff from them it can be difficult to uncover. And CFO's at that level are very clever people......
2/ I suspect a bit of 'don't ask questions you won't like the answers to' - which is not the role of an auditor, but I suspect goes on.
Why they (the companies and/or the actual people) get away with it - i don't know but as others have said above, they don't (always)
mikewsmith. as I said above he is going to need the good staff to stay, especially the mechanics
He might be quite happy if they all walk out, then he doesn't have to honour TUPE and can re employ on his own excellent staff terms and conditions.
How do you think it is that the big four are allowed to continuously sign off the accounts for companies that fold, often with huge black holes in their accounts? They seem to do so with impunity, yet it happens time after time after time
Because business runs on debt. Everyone, everywhere owes someone, something. A company supplies its products to a shop, they're owed money for 30 days (or whatever the invoice period is). The shop pays but then they're in debt until customers come along and buy.
Meanwhile, the company still needs to make more product so although they're owed loads of money from the shops, they have to keep paying their suppliers... The shop still needs to buy in other products from other companies...
The margins aren't great anyway and the cycle industry seems to be one of almost perpetual discounts - partly driven by the likes of CRC / Wiggle but partly through a continual yearly cycle of new models, new kit, new colours. It's insane that a bike model can change year to year - it should be a case of release a model and then wait 3-4 years until the "new / improved" version comes out like Shimano do with their groupsets.
Cue a case of end of season sale, last year's models going out at little beyond trade price (in spite of having taken up valuable floor space all year along with a paid mechanic to build it, a paid sales person to sell it, an expensive retail environment to display it in).
Evans is just a slightly higher profile case due to the number of branches although for years they were offsetting losses of one branch against profits in another branch just to maintain a position on the high street. That's pretty standard business practice too - not all branches of a retail chain have to be profitable; occasionally it's good to have a presence on the high street just to keep a competitor out of there.
It's going to be interesting to see whether the Exposure Light that I ordered (due date of 22/11) turns up! Going into admin, I am wondering what impact that it may have on suppliers.
How many LBS have Evans destroyed over the past few years with crazy cheap deals , interest free credit , take your old shed of a bike and give money off your shiny new one , free delivery , price matching the internet etc ? So now we know how they did it , by trading at a loss which was ultimately unsustainable . Everybody who ever goes into a bike shop and asks for a price match is helping the demise of the bricks and mortar bike shops and ultimately is partially responsible for the demise of Evans .
No idea how it will pan out but Mike Ashley has owned Tri UK for a while now and having been in their Yeovil store last week they don't seem to have any shortage of high end brands (Cannondale, Factor, Cervelo, Scott, Time, Mavic, Zipp, Enve, etc, etc).
No Trek or Specialized at TriUK so it will be interesting to see if they stay but Evans must have been one of their biggest retailers and those manufacturers still need to sell bikes somewhere. Evans issues aside the brands like Trek and Specialized must also be taking a hit from direct to consumer brands like Canyon so maybe a long term we'll see more brands going that route.
With regards to the press reports on 50% of stores closing this is probably partly a negotiating tactic to get landlords to reduce rents, i.e. if you don't reduce rents we'll have to close the store and the landlord ends up with an empty store. Given the state of the retail market I can't imagine landlords have queues of other retailers lining up to rent their retail units so some might take the view that something is better than nothing and renegotiate whilst those that don't will be the stores that close.
Evans issues aside the brands like Trek and Specialized must also be taking a hit from direct to consumer brands like Canyon so maybe a long term we’ll see more brands going that route.
trek offer an online version now which still uses the dealer network, Spec have their concept stores but will do well by being in every town in the UK without the need for Evans, in some ways Evans was against what the big main bike shops do by shoving them all together on one rack with no real brand identification or product info.
As I said last night, I had 130 quid in tesco/evans vouchers still to spend and I hurriedly used them last night after reading this. Well, today I have had an order despatch email so it is looking like they were still honouring them last night/today.
If you have any I would get them spent asap!
I won't be converting any more tesco vouchers to evans until we find out whats happening.
On the plus side I've had a bout four hundred quids worth of gear from evans this year from a third of the value in tesco points.
Oh dear. We have a £1k ctw voucher inbound for Evans.
I wonder if we can wriggle out of it and change retailer?
Maybe, I wonder what percentage of Trek and Specialized's total UK sales were through Evans Cycles? I got the impression for earlier comments that it was quite high.
For high end road and MTB maybe not so much but in terms of volume those brands probably sell way more low end MTB/road bikes, hybrids, kids bikes, etc through the likes of Evans. Those type of buyers don't know they want a Specialized or Trek, they don't spend hours researching on line, reading reviews, etc like your average Singletrack reader might, they just go into a shop like Evans, looks at all the bikes around their price range and buy the one they like the look of.
For every S-works/high end bike sold they must sell 100+ low end bikes and the type of people buying those lower end bikes probably aren't your average Concept Store shopper.
The trouble with the big four is that they're too big to fail. We presently have the cosy arrangement where clients are shuffled along the merry-go-round every few years, why would anyone rock the boat? The industry could not withstand the fallout from another Anderson scandal so it wouldn't be too surprising if there is a collective reluctance to look closely.
Given our discussion about Sports Direct, it's ironic that the accountancies themselves are employing similar business practices: audit work is peaky, with a glut either at calendar or financial year-end, so they have responded by cutting staff and contracting out as necessary. My understanding is that much of this work is performed overseas in lower-wage economies, leading to situations where accounts are signed off without the auditors having set foot in the business they're supposed to be inspecting.
Those type of buyers don’t know they want a Specialized or Trek, they don’t spend hours researching on line, reading reviews, etc like your average Singletrack reader might, they just go into a shop like Evans, looks at all the bikes around their price range and buy the one they like the look of.
Correct - the majority of customers don't even know what brand bike they have, never mind the exact model or year. They went in and bought a blue bike because they wanted something to potter round the local park / get fit / go to work / go to the pub*
The shop had something that vaguely seemed to fit, looked nice and that they could ride out of the shop. That's all that most people want.
On a good week, we could shift 15 Specialized Rockhoppers (£399 - £599 range) out of a single store (this is going back to the early 2000's). However the weeks that you'd sell any single bike at £2000 or more were significantly more rare.
*delete as applicable
Not read any of the posts, but I imagine that will be the end of the Evan’s Sportive series, which is a shame.
trailbreak.co.uk - Just saying. Especially as it was our trail ride series that Evans used to sponsor before they started doing their own, and our business they tried to poach when they did.
Evans sponsored our events for a few years and it worked quite well all round at first, while they were still a small chain, until their management (the same management that started off the round of greedy expansion and VC sell offs that have bought them to this current sorry mess) became more and more arrogant, dictatorial and demanding and started confusing sponsorship with ownership. Eventually they just went behind our backs, set up a carbon copy of our event structure while keeping us hanging on for a renewal, before dumping us at the last possible minute with no warning. They even went to the extent of employing a bloke who used to work for us, for the illusion of “continuity”, and as we found out from long term customers of ours, were telling anyone who’d listen at their events that theirs were the ‘original’ and we weren’t running events any more (which was a total lie).
So whatever anyone says about Mike Ashley, I find it hard to imagine he’s any worse the shower who used to run Evans. I have every sympathy for any shop staff, customers or suppliers who stand to lose out over this, but as far as Evans as a company go, my sympathy level is running at absolute zero.
On a good week, we could shift 15 Specialized Rockhoppers (£399 – £599 range) out of a single store (this is going back to the early 2000’s). However the weeks that you’d sell any single bike at £2000 or more were significantly more rare.
And if you're saying that's a good week, whilst I appreciate those won't be their only sales what's the average margin per bike .... £100????
It's not like they're billing £20k a week, then take out staffing, rent, rates, heat, light ..... etc, etc etc .... not surprising it's a business that struggled to survive as the online competition intensified.
It was inevitable IMHO. Many of us get all misty eyes about the LBS and then go and shop online at Wiggle or CRC.
Physically retail is dead in the water except for things like Supermarkets.
The future is online.
Physically retail is dead in the water except for things like Supermarkets.
The future is online.
As discussed previously on this thread it really isn't the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can't fix my bike still applies to a lot of people.
An update of sorts for those waiting on an order. Got a phone call and an email saying the bike was at the story being built up and would be ready for collection shortly. I didn't take the call otherwise I would have been straight around and taken the bike in it's box! Hopefully everyone's orders will be fulfilled.
OT for @cakeandcheese - not sure which scheme you are using but I *think* the eCertificate for cyclescheme.co.uk can actually be used anywhere (..that accepts cyclescheme).
In any case, it's not like Evans are going to stop selling bikes although it might be worth waiting till it's clear orders are being processed as normal and your local store isn't about to close.
An update of sorts for those waiting on an order. Got a phone call and an email saying the bike was at the story being built up and would be ready for collection shortly. I didn’t take the call otherwise I would have been straight around and taken the bike in it’s box! Hopefully everyone’s orders will be fulfilled.
They could be stalling. If I were you I'd go around and demand it built or not.
"Physically retail is dead in the water except for things like Supermarkets.
The future is online."
No it isn't.
"As discussed previously on this thread it really isn’t the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can’t fix my bike still applies to a lot of people."
Yep, just got to find the right LBS. Mine is great at not only getting what I want/need but will offer advice on alternatives if they don't have it or don't stock the brand I'm after. They also tend to reward me for regular custom by discounting (without me asking!) to the level of CRC and sometimes below it. When they don't I never query it as I know they might not have the margin on that item to do so or whatever. I always expect to pay the sticker price and if they charge less it's a bonus. They've also helped me out assessing my bike after I was doored a few years ago. They also sell a lot of bikes and not just in the budget range either. I don't think they even have a bike below £500 on the shop floor! Always busy, has a decent online presence for bike sales and is a welcoming place to go to, never seen or heard them belittle a newbie for not knowing something basic for example. All of this is basics of retail, any shop can do it if they want to and it's all things you won't get online.
benpinnick
It was always going to be a pre-packaged administration I think. ‘Rescue Plan’ and Sale are not two words that go together otherwise. Unfortunately the company was a basket case with debts massively outstripping its assets (as per 2017 accounts)"
Evans' biggest creditor is also its owner, the private equity company ECI Partners. When ECI bought Evans they transferred £52m of the £80.4m purchase price immediately back to Evans and charged 12% interest on that "loan". Halfords actually tried to buy Evans at the same time but were shut out by the previous owners- also a private equity company.
So, essentially they bought Evans with Evans own money then charged punitive interest on it into the bargain. I've not seen calculations yet of whether - like Maplin- Evans was actually solvent without those "repayments", considering the size of the loan and the repayment structure I suspect it was though.
<edit- had a look and this isn't a proper analysis but yep, the annual cost of those repayments seems to be all that made them lossmaking>
Don't be ridiculous. Evans has been bought out of administration as a going concern. They are hardly going to stiff the very customers that will keep them afloat. The website is still trading as normal - are all the hundreds of customers buying stuff right now who don't know about this going to be ripped off - of course not.
If I had a bike on order I wouldn't be overly worried though a few may not get them and get a refund if there is a supply chain issue.
Edit: this was a reply to a post about running round to grab your bike not to Northwind. I agree with him that the way its been done is very suspect and over the long term Evans will not survive
Just got this email through from Evans' affiliate program team at Affiliate Window (I do pretty well out of affiliate/performance marketing as a side thing) - doesn't bode well if they are cutting off marketing channels and not guaranteeing to pay commissions. I've made sure I have no Evans links either current or retrospective (old links are being replaced with CRC) on any of my channels. I'll be ****ed if they're getting a single lead from me and not paying out my commissions for them:
Dear Publisher,
You may have read in the press that Evans Cycles has been acquired by Sports Direct after going into administration.
We are yet to receive confirmation that any trade before or after administration can be paid, so publishers are advised to proceed at their own risk in regards to continuing to send traffic to the site. Awin have decided to keep the programme open as there is some chance Evans Cycles (Sports Direct) will choose to honour sales post administration; however trade prior to this date will need to go through the usual process.
We are working with Evans Cycles and Sports Direct to clarify this position as soon as possible and we will keep you informed.
Kind regards
The Evans Cycles Affiliate Team
==============================<wbr />==============================<wbr />==
You have received this email because you are a member of
Evans Cycles affiliate program
Don’t be ridiculous. Evans has been bought out of administration as a going concern. They are hardly going to stiff the very customers that will keep them afloat.
PMSL
https://twitter.com/PhilHunt91/status/1046047762708598785/photo/1
Not like there is a template to look at....
“As discussed previously on this thread it really isn’t the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can’t fix my bike still applies to a lot of people.”
Maybe if you want to run a tiny LBS, earn the equivalent of a minimum wage and have all the hassle and responsibility of owning a small business.
It's been discussed many times that people expect to get bikes fixed almost for free.
The snobbery on this thread is quite spectacular and I'm sure all those turning up their noses have never bought any far east mass produced sportswear, or shopped at Amazon, CRC, On One, any other mass discounter etc
Maybe if you want to run a tiny LBS, earn the equivalent of a minimum wage and have all the hassle and responsibility of owning a small business.
It’s been discussed many times that people expect to get bikes fixed almost for free.
Nope decent sized ones making money. Just need to know where to find them and how to do business. Just because you don't look for them doesn't mean they don't exist.
The snobbery on this thread is quite spectacular
Why because we can see mis management and greed that is about to rip apart another part of the high street?
When ECI bought Evans they transferred £52m of the £80.4m purchase price immediately back to Evans and charged 12% interest on that “loan”.
I'm surprised this post hoc accounting trick is legal. I guess they call the £52 m an asset or something since they value the business based on the sale price? Semi-criminal if you ask me?
I’m surprised this post hoc accounting trick is legal. I guess they call the £52 m an asset or something since they value the business based on the sale price? Semi-criminal if you ask me?
Normal practice. I'm sure the Glazers did that to Man U years ago. It certainly feels like something which should be illegal
Why because we can see mis management and greed that is about to rip apart another part of the high street?
The same greed that led Tesco etc to decimate the highstreet. The PSAs about bargains 5-10s at Go Outdoors but no mention of any deals at an Lbs etc.
Unless folk are growing their own food and knitting their own clothing out of wool from their own sheep then we're all part of the same hypocrisy. Let's stop pretending otherwise
“As discussed previously on this thread it really isn’t the only way forward in the bike trade. I know successful and profitable shops. They just know how to get it right.
As the t shirt says the internet can’t fix my bike still applies to a lot of people.”
Yep, just got to find the right LBS. Mine is great at not only getting what I want/need but will offer advice on alternatives if they don’t have it or don’t stock the brand I’m after. They also tend to reward me for regular custom by discounting (without me asking!) to the level of CRC and sometimes below it. When they don’t I never query it as I know they might not have the margin on that item to do so or whatever. I always expect to pay the sticker price and if they charge less it’s a bonus. They’ve also helped me out assessing my bike after I was doored a few years ago. They also sell a lot of bikes and not just in the budget range either. I don’t think they even have a bike below £500 on the shop floor! Always busy, has a decent online presence for bike sales and is a welcoming place to go to, never seen or heard them belittle a newbie for not knowing something basic for example. All of this is basics of retail, any shop can do it if they want to and it’s all things you won’t get online.
Tell us who they are, they could probably do with the positive publicity
Gift cards are still being accepted for online orders, at least they were earlier today. I ordered a bike online this morning knowing that it was in stock at the store, I paid for it with a gift card and picked the bike up from the store this evening. Very relived as the gift card was for £2000.
Jesus! Reuters are reporting that SD bought Evans for just eight million! Talk about a fire sale!
"Evans has been bought out of administration as a going concern"
Has it?
Mr Ashley's statement to the press implies that it wasn't. Companies House implies that something has changed but not what.
It looks a lot like for the moment Evans is operating as if it has been bought as a going concern but hasn't actually. And that, whilst good for customers short-term because their orders and vouchers are being honoured, stores up problems long-term because eventually some of the creditors won't get paid.
Well it could have been eight quid, or two, like BHS was sold for. But I am guessing there isn't a pension scheme problem there.
There will need to be further injections of cash to keep the business going. It will be interesting to see if Ashley can make it worth the investment.
I’m no business analyst but my intuition tells me Evans are F***ed !! Feel sorry for the staff getting shafted before Christmas 🙁
And if you’re saying that’s a good week, whilst I appreciate those won’t be their only sales what’s the average margin per bike …. £100????
It’s not like they’re billing £20k a week, then take out staffing, rent, rates, heat, light ….. etc, etc etc …. not surprising it’s a business that struggled to survive as the online competition intensified.
My point there which either I failed to make properly or you failed to pick up on was that the majority of the shop business was cheap bikes. People literally couldn't have cared less if the bike said Specialized or Trek or Kona or Marin on the downtube: they had £400 to spend and they found the one they felt looked nicest / fitted best.
Maybe part of ther problem was actually that Evans stocked [b]too many[/b] brands - it became difficult to differentiate between the offerings at the lower price point and customers were often left with a choice of 4 bikes rather than a choice of 2.
I believe "as a going concern" is more to do with protection of creditors and the capability of the business to carry on. It doesn't mean that it will carry on, what Ashley does with his new toy is up to him.
I assume TUPE applies?
TUPE will apply, yes. That is a matter of EU law and so does not involve the same concept of what a business is as the concept of a "going concern" in business and insolvency law. Not my area, so I wouldn't like to say which is the broader definition, but my guess would be TUPE.
Well it could have been eight quid, or two, like BHS was sold for.
Very true, but comparing their situation to BHS is setting a staggeringly low bar!
“Evans has been bought out of administration as a going concern”
Has it?
Apparently 2 of the 8 million has gone into the business so yes it would be a going concern. Going concern is a technical phrase that means the business is sufficiently capitalised in order to continue trading and service its debts for some period of time... I don't think that has a specific timeline mind.
Does anyone have any idea what this means for bikes on order? Bought and paid for a bike for my daughter due for delivery on Friday? Will she see it or should I be contacting the credit card company?
/
For bikes on order it’s up to you and them whether the new company will want to honour your order or not. Ask.
Warranties and outstanding orders, deposits are being honoured. It was discussed and confirmed RE Pinnacle bikes.
@benpinnick I am not sure what the phrase means in the context of a pre-pack. Clearly Evans was not a going concern, so the administrators didn't have anything that could be sold as such. Only the injection of further cash can turn it into a going concern. Would the deal with the administrator have obliged SD to inject that cash? Or to put it another way, was the business sold as a going concern, or sold as a basket case which was then, by choice of the purchaser, turned into one?
Im not sure either, I am sure you could line up your transactions in such a way that the business was a going concern for the few seconds it took you to sign the next piece of paper. However there is the bigger issue of then announcing 50% closures. That would, at least to my mind make a mockery of the concept of going concern, even if its still technically correct.
I'm beginning to wonder if my Specialized Shoes are going to turn up on the forecast date of December or even if they'll show up at all? I've got £150 credit in those shoes due to a previous pair ordered not fitting. Wondering whether just to buy something else for now and go elsewhere for the shoes......
Just picked up my bike. Sign on counter stated that gift cards are no longer being accepted.
I am not sure what the phrase means in the context of a pre-pack. Clearly Evans was not a going concern, so the administrators didn’t have anything that could be sold as such. Only the injection of further cash can turn it into a going concern. Would the deal with the administrator have obliged SD to inject that cash? Or to put it another way, was the business sold as a going concern, or sold as a basket case which was then, by choice of the purchaser, turned into one?
The way I understand it that in this case the business retains continuity which I think some people are confusing for being a 'going concern'. Clearly if the business had sufficient liquidity it wouldn't have been sold as a pre-pack by the administrator. Some creditors must have lost out here even if the business is now a going concern thanks to SD cash injection. Ashley isn't going to pay (old) creditors he doesn't have to. You don't get to be a billionaire this way.
Interestingly Evans Cycles has now disappeared from Quidco, was there yesterday.
Their price match took longer than usual to come through, small signs of new changes perhaps.
But I've had the displeasure of having to deal with shoddy customer service from Agent Provocateur another of MA's takeovers. It took me a whole 1 1/2 years of chasing to get a full refund (which they don't do btw).
Just spoke with Evans Customer Service as Sparks said cannot use gift cards for the forseeable future.. tguess I can write the 8 quid off!
now disappeared from Quidco
and currently suspended on my work 'Additions' discount scheme.
Quidco on top of price matching always felt too good to be true!
They have just price matched some pedals and helmet for me but going in store to collect.
They have just price matched some pedals and helmet for me but going in store to collect.
at this point I'd have to guess that it's either sell whatever/however to generate cashflow or the staff don't give a shit
I would not blame them sorry time of year for this type of news.
Might pop in and offer them a crisp handshake for the most expensive bike left in the shop 😂