British outdoor and bike brand Alpkit has entered administration, it was revealed this week. The decision came after a challenging three years of inflation, trade barriers, post-Covid markets, rising interest rates and recovery loan repayments, according to the company’s CEO and co-founder, David Hanney.
“While we have made huge progress, and came incredibly close to a successful turnaround, my Board recognises that these pressures have created an insurmountable mountain for us to climb as we currently stand,” he wrote in a letter sent to shareholders on Monday evening.
According to the letter, the company consulted multiple options to save the business, including a round of fundraising and the possibility of breaking up the business, but ultimately chose to restructure through a pre-pack sale. Talks with a potential new owner and investment partner are now at an “advanced” stage.
“This does not mean we are going cheap, downmarket or anticipate a drop in our product standards,” Hanney’s letter continued.
“We remain totally committed to technical performance, social justice and environmental responsibility – it will let us compete better on performance and price in a challenging market environment. And gives us the profit margin so we can make money on the products we sell.”
The company grew its number of shareholders through crowdfunding campaigns, amassing £1.5 million from 1,350 customers in 2020 and over £2.3 million in 2022. Though Hanney revealed in his letter that the value of these shares has been lost, he promised that “every shareholder who joined us through either of our crowdfunding campaigns will be given shares in the new company.”
Alpkit will transfer all their staff to the new company, and will continue supporting the Alpkit Foundation, which provides grants to groups, schools and individuals widening participation in the outdoors.
