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Cycling industry gives economy £3bn boost

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  1. alibali

    Cycling industry gives economy £3bn boost

    One for the Undercover Economist to sort out on More-or-Less, seems like it might be over-egged a bit. Impressive though.

    Posted 11 years ago #
  2. chdot

    "One for the Undercover Economist to sort out"


    Thread at

    Posted 11 years ago #
  3. chdot

  4. chdot

    “It’s a worrying sign of the instability felt by many businesses in the UK at the moment that even long established, successful businesses such as Moore Large cannot withstand the economic pressures.

    “The bike industry in particular has felt the disruptions caused by Brexit, Covid and the related supply chain issues, and now with rising costs and an energy crisis, it’s an extremely challenging time.

    Posted 3 days ago #
  5. chdot

    Mr Biggs said: "There was a big boom in bike sales during the Covid period. That big demand led to a big increase in supply. Then the supply caught up and lots of stock arrived in the first quarter of 2022. There was a year's worth of bikes arriving in the UK at the same time which meant there was a massive oversupply.

    "That triggered significant discounts at every level by between 30 and 50 per cent. People were still buying bikes but not at a fast enough rate for us to cover our costs."

    Additionally, with Moore Large being an import business, a fall in the value of the pound proved to be a serious problem. It had been expecting to buy goods with the pound being worth around $1.30. However, it fell to around $1.10, sucking profits out of the business.

    When interest rates went up in 2022, that increased the debt burden which proved very difficult to manage. Recognising they were hitting problems, the directors sought to bring in new investment.

    Posted 2 days ago #
  6. chdot

    Following challenging months of trading, Moore Large confirmed it was seeking to appoint an administrator last week (13 March). News of the auction will support fears that the bike retail channel is likely to see vast number of reduced bikes and accessories in a market already contending with too much stock.

    Posted 7 hours ago #

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