Evans Cycles goes on sale following major sales plummet
Evans Cycles is seeking new funding following rough high street trading, and has put itself up for sale.
PwC is said to be in talks with potential buyers for the company. Evans Cycles is not thought to be seeking a rescue deal, although final bids will be dealt next week.
Concerns over the retailer’s financial position first emerged this month, when it was reported the chain was asking for an emergency cash hit from lenders.
Evans has struggled with the recent slowdown on the UK’s high streets, leading to the closure of stores like Toys R Us.
Evans is thought to need at least £10m to keep up with obligations in the next few months.
However, it is not thought to be considering a CVA - a company voluntary arrangement - which is a form of rescue deal that would allow it to shut stores and reduce rents. Such a controversial procedure has recently been used by the likes of New Look and Mothercare.
In April this year, Evans Cycle sacked its chief executive, Andy King, amid reports he had failed to turn the business around. He was replaced by Alan Fort - the firm’s third new boss in two years.