35-year-old company files notice of intention to appoint administrators as Brexit and post-pandemic downturn continue to bite
(Image credit: Planet X)
According to documents submitted to Companies House and the High Court last week, British bike brand and online retailer, Planet X, is set to enter administration.
As reported by Cycling Weekly, a First Gazette Notice dated June 6 was published on the Companies House website. It states that the Yorkshire-based brand will be struck off the register and dissolved within two months unless "cause is shown to the contrary."
Five days earlier, on June 1, a filing at the High Court revealed anotice of intention to appoint an administrator.
It comes just six months after the company announced a profitable financial year for 2021/22, albeit less so than the previous 12-month period.
Planet X, which has its roots in Sheffield, is recognised for its in-house designs and production of bikes like the Pro Carbon and EC-130E road bikes, as well as the Tempest and Hurricane gravel bikes. It also manufactures the On One and Holdsworth brands, and retails various other cycling products through its eCommerce website.
According to the company's group of accounts, which were published on December 24 2022, Planet X achieved a turnover of nearly £17 million for the fiscal year ending March 29 2022, down from £19.1 million in the previous year.
Pre-tax profits for the period amounted to £1.1 million, down from £2.8 million. The report stated that sales growth had "normalised" following a strong performance during the COVID-19 pandemic, but that demand in the UK had declined at a slower pace compared to overseas, with the domestic market accounting for 87% of revenue, up from 80%.
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The report attributed the decline in sales in the EU to the impact of Brexit, while disruptions in stock – as has been a factor affecting the entire industry – and extended lead times were cited as additional contributing factors.
Notably, to mitigate potential supply chain disruptions in the future, the report stated that the company had "deployed a strategy to increase stock holding to minimise the impact of any potential supply chain disruptions in the future."
(Image credit: Planet X)
The news comes as the latest in a string of issues challenging the UK's bike industry, among which the collapse of distributor Moore Large led to more than 35,000 bikes being put up for online auction, while more recently, fellow distributor 2Pure also entered administration.
Josh is Associate Editor of Cyclingnews – leading our content on the best bikes, kit and the latest breaking tech stories from the pro peloton. He has been with us since the summer of 2019 and throughout that time he's covered everything from buyer's guides and deals to the latest tech news and reviews.
On the bike, Josh has been riding and racing for over 15 years. He started out racing cross country in his teens back when 26-inch wheels and triple chainsets were still mainstream, but he found favour in road racing in his early 20s, racing at a local and national level for Somerset-based Team Tor 2000. These days he rides indoors for convenience and fitness, and outdoors for fun on road, gravel, 'cross and cross-country bikes, the latter usually with his two dogs in tow.
