A prominent British outdoor sports retailer, Alpkit, which also owns the Sonder bicycle brand, has filed for administration following a reported loss of £1.46 million in 2024. The company faced significant hurdles over the past three years, leading to this difficult decision.

CEO Statement on Challenges

Alpkit’s chief executive and co-founder, David Hanney, announced the news in a letter to shareholders on Monday. He attributed the situation to several pressures, including sharp cost inflation, a tough market landscape, emerging trade barriers, escalating interest rates, and ongoing recovery loan repayments.

Despite these issues, the company secured support from an investor through a pre-pack sale arranged prior to administration. This arrangement allows Alpkit to maintain normal operations after the transition.

Financial Background and Future Plans

Alpkit has utilized equity crowdfunding platform Crowdcube for funding in the past, notably raising £1.5 million rapidly in 2020 to support expansion. However, financial strains persisted, with a loss of £1.12 million recorded in 2023 despite achieving approximately £15 million in annual turnover.

Hanney ed regret in his statement, noting, “While we have made huge progress and came incredibly close to a successful turnaround, my board recognizes that these pressures have created an insurmountable mountain for us to climb as we currently stand.” He added, “It is an extremely sad day for everyone at Alpkit, and for us co-founders in particular. Today, we are confirming that the board has accepted that we must place Alpkit into administration. We have applied to the courts to start that process. It is hugely regrettable, as unfortunately, this means the value in your shares is lost.”

The sale to a new owner and investment partner remains unnamed but is at an advanced stage. Hanney assured shareholders, “Every shareholder who joined us through either of our crowdfunding campaigns will be given shares in the new company. This is not just a commitment from the team here; it demonstrates how well-aligned our new investor is with each and every one of you. You invested in us, and although that original business is lost, we want you with us with a stake in our future.”

He indicated that further updates on the negotiations would follow shortly.

Company Overview

Alpkit operates 10 stores across the UK, offering its own lines of outdoor apparel, camping gear, and Sonder bicycles designed for road, gravel, and mountain biking.