Not long ago, the UK cycling industry appeared stuck in a painful uphill stretch. A post-pandemic sales hangover, excess stock and squeezed consumer spending combined to leave retailers, distributors and manufacturers saddle-sore from one of the toughest periods the sector has faced in decades.
Yet just as the latest industry figures suggest a long-awaited recovery, the collapse of a major distributor serves as a reminder that not everyone has made it through the turbulence. Last month, premium cycling group Saddleback entered administration, resulting in the loss of 42 jobs. The business, long associated with high-end brands and hardcore riders, became the latest to succumb after several difficult years for the sector.
The Saddleback collapse follows a string of failures, rescues and refinancings that have reshaped the UK cycling landscape since the pandemic boom faded. While some operators have found a route through, others have simply run out of road.
Whatever happened to the MAMIL – or ‘Middle Aged Man in Lycra’? Often heading a queue of increasingly frustrated traffic at weekends, these cyclists clad in spray-on ‘technical’ apparel breathed new life into 21st century bike retailing, sometimes paying the price of a perfectly good car for two wheels on a lightweight frame. The good news is that the MAMIL may not be extinct after all. The bad news is that his return has been slower than many businesses needed.
The latest figures from the Bicycle Association say the market is finally stabilising. After four consecutive years of decline, the UK cycling sector returned to growth in 2025, with overall market value rising by around 5% to just under £1.9bn. Mechanical bike sales increased by 6%, e-bike sales by 2%, while servicing and repairs grew by an encouraging 8%. For an industry battered by falling demand and excess stock since 2020, these look like genuine green shoots.
The economics, however, remain challenging. Bikes are capital-intensive stock, typically costing between £500 and £3,000-plus per unit, with gross margins often as low as 30%. Overstocking ties up cash and leads to heavy discounting, frequently below cost. Many of the sector’s failures have been stock-driven cashflow insolvencies, and the inventory hangover from the Covid-era boom has taken far longer to clear than many expected.
In the days when volumes were much higher, workshops subsidised bike sales. Servicing was reliable, repeat income. Today’s bikes are increasingly complex, particularly e-bikes, with proprietary components, software diagnostics and specialist repair requirements. While servicing revenues are growing, many retailers continue to face pressure from underpaid warranty work and customers accustomed to rapid, low-cost repairs.
It is also worth remembering that recovery is not the same as sustainable growth. While sales are improving, the retail footprint built for a larger market remains largely intact. Price competition remains fierce, weaker operators continue to struggle and the industry is still digesting the consequences of several years of contraction. In a highly fragmented sector, with around 1,500 truly independent outlets, many owners remain enthusiasts first and retailers second; often reluctant to write down ageing stock or make difficult decisions quickly enough.
The MAMIL may be edging back into the saddle, but not every cycling business has survived long enough to benefit. Saddleback’s situation shows that even established names can run into difficulty when a prolonged downturn coincides with changing supplier relationships, rising costs and tighter financing conditions. The recovery may have started, but it is unlikely to lift all in the sector.
Independents and larger groups alike should continue to assess whether their business model remains viable in a changing market. Green shoots aside, the cycling industry remains some distance from the boom years that encouraged so much expansion. It is never too early to evaluate alternative options if market conditions mean that a Creditors’ Voluntary Liquidation or other elements of the insolvency toolkit cannot be ruled out.
Written by the analysts’ team at Buchler Phillips, a UK based independent boutique firm with an impeccable Mayfair heritage, specialising in corporate recovery, turnaround, restructuring and insolvency.