Over 30 jobs secured as Rotherham cycling firm Planet X bought out after appointing administrator

Following a seven week sales process, the business and assets have been sold via a pre-pack transaction to Winlong Garments Limited, a company funded by Baaj Capital LLP.

All of the company’s 33 employees have been transferred to the purchaser as part of the sale.

Founded in Sheffield and now based in Rotherham, the business has been designing and building a range of bikes for over 30 years, under brands including Planet X, Holdsworth, On-One and Titus.

Richard Mostyn-Jones, CEO at Planet X , said: “I am delighted to have secured the future of Planet X and the team here, with this transaction.

“Baaj Capital is a very entrepreneurial organisation with vision and values aligned with our own. We look forward to further building on our heritage and expertise and continuing to supply the cycling community both here in the UK and across the globe.”

A release issued by Interpath Advisory – the firm appointed as administrator prior to the transaction completing – said that the company had performed strongly during the Covid 19 pandemic, but had since experienced a “dampening of demand”.

Interpath Advisory’s statement went on to note that the impact of this on cash flow, coupled with supply chain issues, had prompted Planet X’s directors to explore sale, refinance and investment options for the firm.

Howard Smith and Rick Harrison from Interpath Advisory were appointed as joint administrators to the company prior to the sale.

Mr Smith, who is also managing director at Interpath Advisory, said: “Planet X has grown over the years to become a well-respected and well-loved name in the cycling community.

"We’re pleased to have been able to conclude this transaction which will see the business continue to trade and, importantly, which safeguards the jobs of the company’s workforce.”

On June 6, a first Gazette notice for the compulsory strike off of the business was posted to Companies House.

On June 7, however, this action was discontinued.

The news of Planet X’s purchase comes after fellow UK cycling firms 2Pure and Moore Large fell into administration earlier this year.

Jas Singh, owner and director of Baaj Capital said: “This exciting acquisition accelerates Baaj Capital’s plan to invest across a wide spectrum of diverse business opportunities; the retail sector, with both online and bricks and mortar sites, being only one area of interest.

“Baaj Capital has actively funded the acquisitions of both distressed and solvent companies through many sectors over the recent past. Planet X represents an exciting addition to the businesses trading with Baaj Support.”