Rapha has abruptly closed its North American office and laid off six of its eight staff as the clothing brand says it is “realigning Rapha to better reflect our strategic priorities and current market dynamics.”
Rapha CEO Francois Convercey told Velo that the layoffs were part of a consolidation plan made by the London-based brand.
Rapha sells its high-end clothing and other products in the USA via its direct consumer website, eight clubhouses and has recently begun to work with selected retailers.
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Rapha’s customer service will now be managed from the UK, with Bicycle Retailer reporting that this will be outsourced.
Rapha was acquired by the Walton family's RZC Investments company in 2017 but is one of many clothing brands to be hit by the post-COVID-19 market volatility.
In its financial accounts published in November 2023, Ralpha’s trading company Carpegna Ltd posted a pre-tax loss of £12 million, despite significant increase in turnover since RZC acquired Rapha. This marked six years of concurrent loss.
“We are realigning Rapha to better reflect our strategic priorities and current market dynamics. Over the past five years, Rapha has experienced significant growth and these recent changes will focus us on accelerating towards our purpose of inspiring the world to live life by bike," Convercey told Velo, who first reported the news.
"Organizational changes are always challenging, and I want to extend my gratitude to everyone at Rapha for their hard work — we will do everything we can to support those affected by the organizational changes. U.S. roles in Bentonville were impacted due to the consolidation of resources in London, but NWA [Northwest Arkansas] will remain the home of our North American Headquarters.”
A Rapha spokesperson told Cycling Weekly that the consolidation will not impact the Rapha clubhouse in Bentonville, one of the 22 retail locations the brand operates throughout the world.
