Cycling clothing company CHPT3 has entered liquidation and immediately ceased trading.
The firm, founded by ex-pro David Millar, recently shared a short statement via its website confirming the company’s situation.
“The directors of CHPT3 Limited have instructed Wilson Field Limited to assist in the formalities of a Creditors Voluntary Liquidation,” the statement read. “The Company has now ceased to trade. Creditors will be contacted by Wilson Field Limited in due course.”
News of the firm’s collapse further underlines the turbulant nature of the wider cycling industry.
Just three weeks ago, staff at British retailer i-ride and its bike brand Orro were made redundant, with the parent company of both, the Martlett Group, “effectively liquidated” according to its administrator FRP Advisory. The brands were saved after being acquired by Baaj Capital LLRP but job losses still occurred.
In October a spokesperson for British cycling clothing brand Rapha said that the popular brand had “continued to strengthen its core business operations” despite recording large financial losses for the seventh year in a row, with its losses deepening by over £10 million.
“The management team remains focused on further improving business profitability and resilience while the sector remains challenged,” the spokesperson continued. “Meanwhile, our marketing, creative and product teams continue to strive to make the Rapha brand more visible and engaging to cyclists, as well as delivering a steady stream of product innovation to increase customer lifetime value.”
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In August it was announced that former Team Sky CEO Fran Millar would join the brand as CEO.
The past two years have seen the industry continue to encounter difficulties in the aftermath of the Covid pandemic. Multiple household name businesses experienced issues with Wiggle Chain reaction Cycles being the most well-known casualty before it was later acquired by Mike Ashley’s Frasers Group.
Experts have said that businesses within the cycle industry need to endeavour to strive to survive in 2025, when it is anticipated that the turbulence generated by the pandemic will finally begin to settle.
Cycling Weekly contacted both David Millar and Wilson Field Limited for further comment in relation to CHPT3’s situation but did not receive a response.
