Halfords Group agrees transfer of 11 Cycle Republic stores

Halfords Group has announced that 11 of its 22 Cycle Republic stores will be transferred to Pure Electric, securing the future employment of 85 staff. The deal is part of Halfords’ strategic move away from a store-based model in regard to its cycling business, aiming to serve customers in a more economical way.

The bike and car parts retailer first stated its intention to close its Cycle Republic business last month, potentially putting 226 jobs at risk unless a buyer was found. Now, a deal has been put in place for 11 Cycle Republic stores and 85 employees across the country to transfer to Pure Electric under TUPE regulations. The stores being transferred are located in Birmingham, Bristol, Derby, Edinburgh, Gateshead, Glasgow, Liverpool, Manchester, Norwich, Nottingham, and Southampton.

The remaining 11, alongside the Boardman performance centre, will close. Halfords is continuing to consult with those support centre staff affected by these closures, and aims to mitigate redundancies where possible. Cycle Republic’s standalone website, Cyclerepublic.com, will also be shut down in the first half of FY21.

The decision is part of the retailer’s overall strategy to improve profitability, first highlighted in its strategic update that was published in November 2019. As well accelerating the growth of its motoring arm, this includes focusing resources and investment into its Tredz brand, its online and specialist performance cycling business.

“We’re pleased to have secured this agreement with Pure Electric. Our key priority throughout this process is to mitigate as many redundancies as possible.  Not only does this agreement safeguard the employment of 85 of our Cycle Republic colleagues, but it is helping to secure the future of a number of retail sites across the country,” said Graham Stapleton, CEO of Halfords Group. “We will continue to do everything that we can to redeploy other colleagues who are impacted by our proposal elsewhere within our business.”