Evans Cycles set for closures in spite of ‘profit’

Sports Direct owner Mike Ashley is set to close a swathe of Evans Cycles stores in spite of recent suggestions that most of its outlets turn a profit.

The retail magnate has warned that he might only be able to keep half of Evans Cycles stores open in the future “in order to save the business”.

However, an administrators’ proposals document revealed by The Telegraph at the weekend found Big Four accountancy firm PricewaterhouseCoopers (PwC) decided “almost all the stores were profitable” but the company was “burdened” by fixed costs at its head office.

Last month Sports Direct warned it may have to shut half of the chain’s 62 stores, potentially putting more than 400 jobs at risk.

Ashley’s decision to save the ailing chain, which ended speculation that rival Halfords was set to swoop in for the specialist retailer, came after the firm’s management team declared that £20m was needed as part of a turnaround plan.

Cycle Evans is one of several acquisitions made by billionaire Ashley during his recent acquisition spree.

In August Ashley also added House of Fraser to his retail empire, vowing to transform the beleaguered high street chain into the “Harrods of the high street”.

The tycoon’s rescue bids come amid persistent high street woes, driven by higher costs and stiffer competition, which have seen a number of retail giants file for administration.

PwC declined to comment and Sports Direct could not be reached.