226 jobs at risk as Halfords closes Cycle Republic chain
Halfords has announced plans to close its Cycle Republic chain of stores, putting 226 jobs at risk.
The retailer said it will shut all 22 outlets and its performance centre site in Evesham as it looks to focus on its online cycling business, Tredz.
It said it expects the closures, which are due to complete in the first half of the next financial year, will cost the firm between £25 million and £35 million.
Halfords said it is looking to mitigate redundancies where possible and is “also actively exploring opportunities to sell the sites as a going concern”.
The Cycle Republic business was “low-returning” and “stock intensive”, Halfords said, meaning the exit will free up investment and resources to drive into its motoring business.
It said it will continue to invest in cycling through the online-focused Tredz business and its Halfords retail cycling arm.
Last year, the Cycle Republic business reported a £4.3 million loss, which is predicted to be “materially smaller” in 2020.
Halfords chief executive Graham Stapleton said: “The board has come to the difficult, but necessary, decision to propose the closure of Cycle Republic, our retail stores-focused performance cycling brand.
“This proposal is not a reflection of the hard work of our Cycle Republic colleagues, who I would like to thank for their commitment and passion in serving our customers.
“Going forward we propose to focus our investment and resources in Halfords and Tredz, through which we will deliver market-leading specialist propositions for both mainstream and enthusiast cyclists via a business model that improves our overall economics.”