Rapha abruptly closes North American office, fires staff

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Rapha abruptly closes North American office, fires staff

Rapha has abruptly closed its North American office and laid off six of its eight staff members. The apparel brand announced that it is "reorganizing Rapha to better reflect its strategic priorities and current market dynamics."

Rapha CEO François Conversy told Velo that the layoffs are part of a consolidation plan by the London-based brand.

Rapha sells high-end clothing and other products in the US through its direct-to-consumer website and eight clubhouses.

Rapha's customer service will be managed from the UK, which Bicycle Retailer magazine reports will be outsourced.

Rapha was acquired by the Walton family's RZC Investments in 2017, one of many apparel brands hit by market volatility after COVID-19.

In financial results released in November 2023, Ralpha's trading company Carpegna Ltd posted a pre-tax loss of £12 million, despite a significant increase in sales since RZC acquired Rapha. This means that the company has been in the red for six years.

"We are restructuring Rapha to better reflect its strategic priorities and current market dynamics. Over the past five years, Rapha has experienced significant growth, and these changes will allow us to focus on accelerating toward our goal of "inspiring the world to live by bicycle," Conversey told Velo, which first reported the news.

"Organizational change is always challenging, and I want to thank everyone at Rapha for their efforts. The consolidation of resources in London has affected the U.S. role in Bentonville, but NWA (Northwest Arkansas) will remain the home of the North American headquarters.

A Rapha spokesperson told Cycling Weekly that the consolidation will not affect the Rapha Clubhouse in Bentonville, one of the brand's 22 retail locations worldwide.

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