A prominent British outdoor sports retailer has filed for administration following a £1.46 million loss in 2024. Alpkit, known for its sporting goods and ownership of bicycle manufacturer Sonder, cited intense challenges over the past three years as the key factors behind the decision.
CEO’s Statement on the Challenges
David Hanney, co-founder and chief executive of Alpkit, announced the news in a letter to shareholders. He highlighted rapid cost inflation, a tough market landscape, emerging trade barriers, escalating interest rates, and mounting recovery loan repayments as primary contributors to the financial strain.
Despite these hurdles, the company secured support from an investor through a pre-pack sale arranged prior to administration. This arrangement allows Alpkit to maintain normal operations after the transition.
Financial Background and Future Outlook
The announcement reached shareholders via the equity crowdfunding platform Crowdcube, which Alpkit previously tapped for expansion funding, including a swift £1.5 million raise in 2020. However, performance has declined since then, with a £1.12 million loss in 2023 despite generating approximately £15 million in turnover.
Hanney ed regret in his statement, noting significant progress toward recovery but acknowledging overwhelming pressures. “While we have made huge progress and came incredibly close to a successful turnaround, my board recognizes that these pressures have created an insurmountable mountain for us to climb as we currently stand,” he stated.
He described the move as an “extremely sad day” for the team and co-founders, confirming the board’s decision to initiate administration proceedings through the courts. This step results in the loss of value for existing shares.
Negotiations for a sale to a new owner and investment partner remain at an advanced stage, though the buyer’s identity has not been disclosed. Hanney assured shareholders that participants from prior crowdfunding efforts would receive shares in the restructured company. “Every shareholder who joined us through either of our crowdfunding campaigns will be given shares in the new company,” he said. “This is not just a commitment from the team here; it demonstrates how well-aligned our new investor is with each and every one of you. You invested in us, and although that original business is lost, we want you with us with a stake in our future.”
Hanney indicated that further details on the negotiations would follow soon.
Business Operations
Alpkit operates 10 stores across the UK, offering its proprietary line of outdoor apparel, camping gear, and Sonder bicycles tailored for road, gravel, and mountain biking.
