Sky News has reported that Halfords (LON: HFD) has pulled out of rescue talks with Evans Cycles.
The UK’s biggest bikes retailer was previously in talks with Evans Cycles and made bids for the struggling retailers but has ended discussions.
A source told Sky News that Halfords plans to invest on its current brands, Cycle Republic and Tredz, rather than invest in Evans.
Halfords declined to comment on the report.
Sports Direct (LON: SPD) is rumoured to be the new saviour of Evans Cycles. Mike Ashley recently purchased House of Fraser in a £90 million deal after it fell into administration.
It is now yet known if a deal will be agreed between Sports Direct and Evans but a likely deal will be valued at between £10-20 million.
The cycle chain was founded almost a century ago and has been one of the many retailers struggling amid the difficult retail environment.
Group’s including House of Fraser, Mothercare (LON: MTC), New Look and Toys R Us UK have either been forced into administration or secured creditor approval for radical restructurings.
Evans is being advised by PricewaterhouseCoopers (PwC). It has over 60 stores across the UK and required an urgent capital injection following a slump in profits back in September.