Alpkit has entered administration, with the company saying it is in advanced talks with a new owner and investment partner in an effort to secure the future of the business.
In a letter sent to shareholders via Crowdcube, Alpkit CEO and co-founder David Hanney said the board had accepted it “must place Alpkit into administration”, describing it as “an extremely sad day for everyone at Alpkit”.
Hanney attributed the move to sustained pressure over the past three years, citing “rapid cost inflation”, a challenging market environment, “new trade barriers”, and the impact of interest rates and recovery loan repayments.
Alpkit says it expects operations to continue through a pre-pack administration process. It says stores are expected to remain open, customer orders to be fulfilled, and jobs to be saved, with staff transferring to the new company. The business also says product development is ongoing, with new ranges already in the pipeline.
The company began in 2004 in the Peak District as a direct-to-consumer outdoor kit brand and has since grown into a national retailer with UK stores. It is also the company behind Sonder bikes.
Alpkit says the value of existing shares will be lost as part of the process. Hanney also told shareholders that those who invested via Alpkit’s crowdfunding rounds would be given shares in the new company.
Further details of any deal are expected to be announced soon.
Alpkit is a brand that is very familiar to us here at Singletrack and we’ve come to it very well over the years through reviews and also through working together on marketing campaigns. Here’s hoping the Alpkit name continues beyond Administration.