Mike Ashley strikes again

[Iris]

https://www.theguardian.com/business/20 ... ans-cycles

Bugger. Another decent business bites the dust.

[Rocky]

I’m trying to figure out what he’s going to asset strip before walking away leaving staff with no redundancy payments or pension.

[JohnToo]

I bought both my daughter and my wife bikes from Evans. They were convenient for having a pretty good and broad range in stock and being willing to get in and set up a different size for a test ride without obligation. But I have watched them evolve from the single store in Waterloo to an ever expanding empire and I always wondered whether it was sustainable. Was their business model based on expansion or was that just their ambition? Are business models based on expansion ever sustainable? Or are business models based on just one shop equally ever sustainable? Anyone who understands economics care to pine?

[Iris]

I don't know the rules around redundancy, but TUPE probably means that statutory minimum redundancy payments at least are safe. Pensioners will get at least 90% of what they were expecting - 100% if they were DB pensioners in payment or DC pensioners and at least 90% if they're future DB pensioners. The business as a large enterprise is probably new enough that there are few, if any, DB pensioners - though I guess I'll find out soon enough.

Ashley's business model for his non-Sports Direct businesses seems to be to cut costs by closing shops and dump surplus inventory, negotiate hard with landlords and suppliers and give some of the floor space over to Sports Direct goods.

As to the sustainability of any particular model - it's obviously contingent on all sorts of things. There is a sustainable business model to be had based on a single shop, but it's not especially lucrative, and you need a lot of luck or a lot of skill to find the right niche and the right location (Waterloo selling general bikes probably isn't it). There is also a sustainable business model to be had based on expansion - there are many very successful large chains in this country and oversees.

I don't want to speculate about what finally tipped Evans over the edge, but it's safe to say that UK high street retail isn't in a good place - especially UK retail reliant on imports.

[Regulator]

I was talking to the guys in our local Evans (on Chesterton Road, just over the Cam from our piec-nic spot on Jesus Green) about all this and, obviously, people are very worried.

They’re a profitable- but newish - branch. A young team, but they - on the whole - know their stuff and their mechanics are first class.

[Greg]

[Rutabaga]

Anecdotally I never found Evans particularly woman-friendly, and their shop stock levels of women's clothes and shoes were atrocious, whereas Sports Direct usually has so much of everything in stock that the same doesn't apply quite so much. But that aside, this doesn't seem like great news.

[JohnToo]

Evans survived as just that one shop on The Cut for a good long time, having carved out a niche as a specialist touring/bespoke supplier. F W Evans was a brand in itself. That was in an era when there were many such - Pearson, Longstaff, Mercian, Geoffrey Butler, etc. Clearly the world has changed. But it is still possible for bike shops to exist as a single shop, as small chains, or as a single shop supplying a wider niche market (Hewitt, Spa, Thorn), possibly the closest equivalent to what Evans used to be. We’re Evans just unlucky, did they pick a wrong business model, or were they just overambitious? It doesn’t actually matter much, but I confess it would fit my prejudices nicely if they failed largely through over ambitious expansion.

[Joan]

You may be aware that Sports Direct Group, through a subsidiary, recently acquired the business and assets of F.W. Evans Cycles Limited.

Your personal data as held by Evans Cycles has now been transferred to that company, which is now the data controller of your personal data.

We want to reassure you that we will continue to hold your personal data securely and use it as permitted by law and in accordance with our Privacy Policy and your marketing preferences.

<shudder>

[Dunckel]

<shudder>

I have shopped at Evans - mostly gel bars. Every time at the till they ask me for my address and e-mail and every time I refuse. Often I ask why they need it, and every time I get a different reply. Glad I always refused, I don't want Ashley having his grubby mitts on my data.

[Joan]

Unfortunately, I have ordered online, and they get your email address that way. Sneaky bastards.

[Rocky]

Unfortunately, I have ordered online, and they get your email address that way. Sneaky bastards.

My email is Dunckel@gmail.com and I get my stuff delivered to Leicester. So I'm OK.

[Dunckel]

My email is Dunckel@gmail.com and I get my stuff delivered to Leicester. So I'm OK.

Which reminds me, when are you coming over to pick up the gimp suit that turned up here?

[Rocky]

Which reminds me, when are you coming over to pick up the gimp suit that turned up here?

When my tight white trousers arrive.