Cycle Republic store in Leeds to close
Cycle Republic owner Halfords is to close all of its stores as part of a review of the business.
Halfords Group will close the operations of Cycle Republic as well as the Boardman Performance Centre.
The closure programme will include the chain's branch on Infirmary Street in Leeds.
A spokesperson said: "Our proposal links directly to our strategic update in November 2019. At the time, we outlined our intent to improve the profitability of our cycling business and the proposed closure of Cycle Republic reflects the challenging economics of a store-based dedicated performance cycling operation.
"Exiting a low-returning, stock intensive business allows us to improve our return on capital whilst freeing up investment and resources to continue to drive our services-focused strategy, with an emphasis on accelerating the growth of our motoring businesses. The proposed closure is expected to be marginally accretive to earnings in FY21 and will also enhance cashflow and net debt on an ongoing basis, principally through lower working capital requirements."
In the year ended 29 March 2019 Cycle Republic made a loss of £4.3m, with the FY20 loss expected to be materially smaller.