Another big UK cycle distributor enters administration
The embattled UK cycling industry suffered another loss today as stalwart distributor 2Pure entered administration.
The firm, which is understood to count between 11 and 50 staff on its books, filed documents at Companies House showing 2Pure Limited had appointed administrators.
Incorporated in 2006, the firm operated across the cycle, running and outdoor pursuits space and counted brands such as tubeless tyre sealant manufacturer MilKit and eco-friendly bike cleaning product company Kingud among its clients.
According to a report by industry publication BikeBiz the firm announced that managing director George Bowie had left his position earlier this month.
The collapse of 2Pure follows that of its long-standing competitor Moore Large. That company folded in March this year and could trace its lineage all the way back to 1947.
Just this week Cycling Weekly reported that a group of 156 trade creditors to the company were set to be left out of pocket to the tune of £5.5m in total.
Administrators of that firm said a weak pound, surplus stock from the pandemic and the pressures of inflation had all contributed to the company’s demise.
Their report read: “In line with industry trends, the company suffered significant supply chain disruption followed by reduced consumer demand and inflationary pressures. In addition, the weaker pound had a significant adverse impact as the company predominantly purchased goods in US dollars from suppliers based in the Far East.”
It’s not yet clear exactly what led to the collapse of 2Pure but as a fellow distributor it would have likely been subject to similar macro-economic pressures.
2Pure's name is just one in a growing list of British cycling companies that have found themselves in difficulty in 2023.
Clothing companies Presca and Milltag have both disappeared due to economic woes, while Velovixen was rescued out of liquidation by fellow British brand Stolen Goat.
Speaking to Cycling Weekly after Velovixen’s liquidation co-founder Phil Bingham pinned his company’s collapse on a “perfect storm” of factors, citing “energy prices, inflation, doom and gloom amongst consumers and the cost of living”.
It was a remarkably similar list to the factors behind Moore Large’s collapse. With many of those issues still present in the UK economy and the latest administration of 2Pure there will be scant hope that the current wave of company failures is at an end.