Evans Cycles puts jobs at risk, with half of the businesses at risk, according to the Sports Direct rescue agreement
City & Finance reporter for the Daily Mail
Hundreds of jobs are threatened at Evans Cycles after new owner Sports Direct said half the stores could be closed.
The bicycle retailer, which operates 62 stores in the United Kingdom, employs 1,300.
The company, which had been looking for a buyer, went into administration on Tuesday and was immediately sold in a process known as "pre-pack".
Jobs threatened: Evans Cycles, which operates 62 stores in the UK, employs 1,300 people. New owner Sports Direct said half of the deal could be closed
Mike Ashley, Sports Direct's Chief Executive, said, "We are pleased to have saved the Evans Cycles brand.
However, in order to save the business, we only believe that we will be able to keep 50 percent of the business open in the future. Unfortunately, some shops have to be closed. "
Landlords of bike locations will be contacted over the next few days to discuss the future of each store.
The acquisition marks the recent expansion of Ashley's high street empire following the acquisition of House of Fraser this year.
It turned out that Evans had a rescue contract in mind in September and had discussions with its lenders to seek a capital injection.
Administrators at PwC were used to oversee a sales process, with Halfords and JD Sports also being potential buyers.
Matt Callaghan, joint administrator, said: "2018 was a very difficult trading year for the company."