bikes-uk calls in the receivers

bikes-uk, the country’s second biggest chain of dealers, has gone into receivership.

The firm called in receivers Grant Thornton at 9pm last night and staff at the 16 dealerships were told the news this morning.

Grant Thornton says the 14 shops around the country will continue trading as normal and that firms have already expressed an interest in buying Bikes-UK as a going concern. Carnell-City has ruled itself out of the running.

Grant Thornton’s Nigel Ruddock, said: " We are aiming to continue trading and the bike manufacturers are being supportive of that aim. We have funding lines for buying the bikes and stock is available. "

Cash flow is likely to be a priority right now, which means there are bound to be bargains on current stock.

The chain was formed last year when Bikes-UK spent £5.7 million on buying 15 independent dealers – mainly in the west of England – and then brought them under the same banner.

Among the 14 now running are 10 former Fowlers branches, which changed their name to Bikes-UK, while the other four kept their original titles.

Ruddock added: " It’s been a tough market since Bikes-UK launched and they didn’t get the systems in place to generate money quickly enough. "

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