The future of British bicycle company Planet X has been secured after it was sold to Winlong Garments Limited, funded by private equity firm Baaj Capital LLP.
The Sheffield-founded company was reportedly close to going into administration but announced on Friday night that it had been sold. All 33 employees of the company have been transferred to the buyer as part of the sale.
The sale, which took seven weeks, “generated significant interest from trade and financial investors,” according to a press release. The decision to explore “sale, refinancing and investment options” comes after “demand has subsided” in the wake of the Covid-19 pandemic.
Planet X designs and manufactures its own bikes, such as the EC-130E, Hurricane and London, but also sells other products on its website, including clothing and accessories.
After taking over the brand in 2015, it also trails the Holdsworth line of bikes Helm and Corsa. The brand sponsored the short-lived Holdsworth Pro Racing team in 2018.
According to the company’s report for the year ending March 29, 2022, the company’s turnover in the 2021/22 financial year was close to £17m, down from £19.1m in the 2020/21 financial year. Profit before tax for the period was £1.1 million (2021/21: £2.8 million).
“I’m delighted that this transaction has secured the future of Planet X and the team here,” said Planet X CEO Richard Mostyn-Jones. UK and globally. ”
Jas Singh, owner and director of Baaj Capital, said Planet X was an “exciting addition” to his firm’s portfolio.
He said: “This exciting acquisition accelerates Baaj Capital’s plans to invest in a wide range of different business opportunities; retail, both online and brick-and-mortar, is just one area of interest.
“Baaj Capital has recently been active in financing the acquisition of distressed and solvent companies through a number of divisions. Combining specialist production and innovative design with a reputation for quality and finish, Planet X represents an exciting opportunity to trade with the support of Baaj Exciting addition.”
It’s a silver lining for the UK cycling industry, with distributor 2Pure to date coming into administration after 2023, as well as Moore Large, a distributor dating back to 1947. Clothing companies Presca and Milltag are both extinct, while Velovixen was rescued from liquidation by its British counterpart, Stolen Goat.