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Rotherham-based bike company Planet X could be set to enter administration, according to documents filed Companies House and the High Court.
On Thursday, June 1, Richard Mostyn-Jones, a Planet X director, applied to the High Court to notify the company’s intention to appoint an administrator.
Then earlier this week, Cycling Weekly first reported that a Companies House update showed that the company had been served a First Gazette notice for compulsory strike-off, dated Thursday, June 6.
The notice reads: “The Registrar of Companies gives notice that, unless cause is shown tio the contrary, the Company will be struck off the register and dissolved not less than two months from the date shown above.
“Upon the Company’s dissolution, all properties and rights vested in, or held in trust for, the Company are deemed to be bona vacantia (vacant goods) and will belong to the Crown.”
Planet X is best known for its own Planet X brand as well as the operation of On-One, Titus, and Holdsworth.
It also stocks a large range of accessories and clothing.
Founded in 1988 by Dave Loughran, the company became an employee-owned trust in 2020 under the name of Planet X EOT Trustees Limited.
Planet X’s latest set of accounts filed earlier this year showed a reduction in revenue from £19.1 million in 2020/21, to just under £17 million in 2021/22.
Pre-tax profits reduced by more than 50% for the period, dropping from £2.8 million in 2020/21, to £1.1 million in 2021/22.
A combination of Brexit and supply chain issues caused by the Suez Canal incident were given by the directors as some of the reasons for a reduction in revenue.
When looking at “Principal Risks and Uncertainties” for the year ahead, Trevor Parker, one of the directors, wrote that the business was “highly dependent on consumer confidence” and a number of factors around disposable income could have an impact on its success.
Should all the factors above play out and none of our growth initiatives succeed over the coming year, there may be material uncertainty to our forecasts.
Market conditions including high inflation, increased borrowing costs, supply chain disruptions, GBP to USD exchange rate, and an increase in Corporation Tax were all listed as things that could impact demand for Planet X’s products.
Parker wrote: “Should all the factors above play out and none of our growth initiatives succeed over the coming year, there may be material uncertainty to our forecasts.”
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Despite this, the board said it was “optimistic”, with international opportunities to be capitalised on.
Parker, on behalf of the board, added: “The business is well established and continues to be a market leader renowned for high quality products at fair prices.
“Despite difficult trading conditions, we are working in partnership with our bank to ensure we maximise the medium and long-term opportunities ahead of us.”
Planet X has been contacted for comment.
