Planet X Going Under?

photonic69
photonic69 Posts: 2,668
in Road general
Just seen this. Looks like bad news all round. Didn't buy that much from them in relation to other online stores of late but did buy some excellent bargains. It will be a real shame to see them go.

https://www.cyclingweekly.com/news/british-bike-company-planet-x-set-to-go-into-administration


Sometimes. Maybe. Possibly.

Comments

  • pblakeney
    pblakeney Posts: 26,969
    Started off by buying and selling Chinese sourced stuff.
    People now go direct. Disappointing but not surprising.
    The above may be fact, or fiction, I may be serious, I may be jesting.
    I am not sure. You have no chance.
    Veronese68 wrote:
    PB is the most sensible person on here.
  • me-109
    me-109 Posts: 1,915
    Well, my new bike order just submitted might be riddled with hassle.
  • DeVlaeminck
    DeVlaeminck Posts: 9,031
    Similar to Moore Large then in that it was recently bought out by employees.
    [Castle Donington Ladies FC - going up in '22]
  • shirley_basso
    shirley_basso Posts: 6,195
    EOT good way to get some tax free cash out of he business.

    ML was an MBO (not tax free), PX was an EOT (tax free). EOT the vendor is also the buyer, really so it's quite a swizz.
  • DeVlaeminck
    DeVlaeminck Posts: 9,031
    So the original owners were still involved ?

    Shame if they do go under as they did offer some competitively priced bikes.
    [Castle Donington Ladies FC - going up in '22]
  • Wheelspinner
    Wheelspinner Posts: 6,659
    DeVlaeminck said:

    So the original owners were still involved ?

    Shame if they do go under as they did offer some competitively priced bikes.

    Competing with who? Other bike companies going broke?

    Open One+ BMC TE29 Seven 622SL On One Scandal Cervelo RS
  • DeVlaeminck
    DeVlaeminck Posts: 9,031
    Competing with other brands in the same market sector.
    [Castle Donington Ladies FC - going up in '22]
  • Munsford0
    Munsford0 Posts: 668
    They are still emailing me :)
  • me-109
    me-109 Posts: 1,915
    First Gazette notice for compulsory strike off published. Looks like failing to file accounts. Whether or not that's trying to hide something remains to be seen. Depends how badly the past year has gone, whether the cash in the bank has been eaten, or if they've had the same issues as ML and ended up with too much cash tied up in stock.

    Bike order says it's 'in picking', cash has gone from bank to V12, but I've not got an estimated build or delivery date (or any further confirmation of order if they send such things).
  • me-109
    me-109 Posts: 1,915
    Seems like they're saved (for now at least):
    https://road.cc/content/news/future-planet-x-secured-cycling-retailer-sold-301801
  • froze
    froze Posts: 213
    They were probably selling things too cheap, and the small profit margins did them in.
  • super_davo
    super_davo Posts: 1,205
    Well they are still trading so...

    IMO their slavish following of SportsDirect business practices has been their biggest problem.

    They had a cheap and cheerful image when I started and a lot of goodwill from people who bought them as first serious bike or carbon wheels etc.

    That image has been trashed by constantly changing prices / discounts, some pretty poor products and a bad rep for customer service.

    IMO they need to position Planet X as the do it all value range, Holdsworth as the fashionable/heritage range, Viner as the premium range. Carnac for value clothes / helmets / shoes. Stop the confusing prices / discounts. Start having a few halo products that improve the image of the brand (by rebadging top notch Chinese OEMs), whilst still offering competitive priced stuff for the masses. Ribble have massively changed their image and are now very successful - Planet X will be starting from a lower place but they could yet turn it round.
  • shirley_basso
    shirley_basso Posts: 6,195
    If you read the article it was the working capital (stock,.inventory etc) which killed them.
  • slowmart
    slowmart Posts: 4,516
    super_davo said:

    Well they are still trading so...

    IMO their slavish following of SportsDirect business practices has been their biggest problem.

    They had a cheap and cheerful image when I started and a lot of goodwill from people who bought them as first serious bike or carbon wheels etc.

    That image has been trashed by constantly changing prices / discounts, some pretty poor products and a bad rep for customer service.

    IMO they need to position Planet X as the do it all value range, Holdsworth as the fashionable/heritage range, Viner as the premium range. Carnac for value clothes / helmets / shoes. Stop the confusing prices / discounts. Start having a few halo products that improve the image of the brand (by rebadging top notch Chinese OEMs), whilst still offering competitive priced stuff for the masses. Ribble have massively changed their image and are now very successful - Planet X will be starting from a lower place but they could yet turn it round.

    Wow, I’d stop digging

    https://www.trustpilot.com/review/www.planetx.co.uk#

    As the post suggests above, cash flow, excess stock and elongated times for bike parts and being a relatively small fish in a very large pond when it comes to bike parts are some of the known issues. There’s rarely one factor in the demise of a business. There have certainly been headwinds for most businesses post covid and brexit.

    Tell me, how profitable are Ribble? They’ve certainly revamped their image, capability and range of bikes. They do however have a large business which wholly owns them and that makes a night and day difference in what capabilities you can utilise to grow.

    Two large UK cycle distributors have so far gone into administration this year. It’s bleak times for most in the industry and currently no light at the end of the tunnel.

    Turnover is vanity, profit is sanity and cash is king.

    “Give a man a fish and feed him for a day. Teach a man to fish and feed him for a lifetime. Teach a man to cycle and he will realize fishing is stupid and boring”

    Desmond Tutu

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