Rapha has recorded a £20m pre-tax loss just six months after it was bought for £156m by heirs to the Walmart fortune.
In August of last year, private equity firm RZC Investments bought a majority stake in Rapha.
Speaking at the time, the firm’s founder and chief executive Simon Mottram said the acquisition heralded, “the start of the next stage of our journey,” and was, “testament to the growth and potential that people see in Rapha and in cycling.”
At the time of the purchase, the firm’s profit sat at around £1.4m.
Retail Gazette reports that Rapha has now reported a £20m pre-tax loss on turnover of £42.2m in the six months to January 2018.
In September of this year, the firm announced a wave of job cuts following a series of uncharacteristically protracted sales over the summer, with many items also listed on the discount clothing website Sportpursuit.
Speaking at the time, a spokesman said: “As we entered 2018, we adjusted our trading strategy, prioritising long-term profitable growth above short-term sales. As part of this, we are simplifying certain areas of the business, in order to reduce costs, and consolidate and strengthen our position. These actions will result in the reduction of a limited number of positions in our London headquarters.”