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 a notice 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%.
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.”
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.
Elsewhere in the world, Shimano’s annual forecast paints a negative picture, while employee layoffs have been a prevalent theme for much of the past 18 months, with Wahoo suffering significantly and Specialized among the highest-profile companies to let staff go.
Cyclingnews has contacted Planet X for comment.
