Evans Cycles seeks £10m in urgent funding from lenders

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.

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