Sports Direct buys Evans Cycles and announces closures

Mike Ashley’s Sports Direct is set to shut dozens of Evans Cycles stores after it bought the bicycle retailer in a pre-pack deal. Sports Direct has outlined plans to close half of Evans’ 62 stores. According to figures from Radius Data Exchange, this puts 153,000 sq ft of store space at risk. The 62 stores span 306,000 sq ft altogether. Ashley said: “We are pleased to have rescued the Evans Cycles brand. However, in order to save the business we believe we will be able to keep only 50% of stores open in the future. Unfortunately, some stores will have to close.” CBRE’s James Keany, who has been advising on Sports Direct’s House of Fraser store strategy, has been retained on all property-related aspects of the Evans takeover. Keany said: “We are looking forward to working with landlords in order to help create a sustainable business. We will make contact with landlords over the next few days and discuss the future of individual stores.” Sports Direct bought House of Fraser in a similar rescue deal in August. James Child, retail analyst at EG, said: “Evans Cycles becomes the latest retailer to slip into the red owning to difficult trading conditions and rising costs. “Evans had posted high revenues following an increase in sales after the success of Team GB at London 2012. “[But] as discretionary spending by consumers had tightened post-referendum, expensive one-off purchases like bicycles have fallen.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette