Evans Cycles seeks £10m in urgent funding from lenders

2091

Evans cycles has held urgent talks with lenders in an attempt to secure a cash lifeline to offset falling profits.

According to Sky News the near-century-old retailer has hired accountancy firm PwC to advise it on a financial restructuring as it seeks out at least £10 million in funding from its principle lenders to keep it afloat.

Though details of just how much trouble the retailer is in are not yet clear, it posted pre-tax losses of £2.5 million in the year to October 28 2017 despite sales edging up, following losses of £5.8 million a year prior.

In April it also dumped its second chief executive in as many years, ousting Andy King after less than 18 months amid a scramble to turn around its finances, citing a failure to meet business targets.

Evans Cycles is understood to be backed by a number of investment firms like Active Private Equity, AIB and HSBC, with the latter two hiring AlixPartners to advise them over the investment.

Click here to sign up to Retail Gazette‘s free daily email newsletter