The British cycling events organiser Hotchillee has announced that the firm has entered liquidation due to what were described as "financial difficulties" across recent years.
In a statement posted on the company’s website, Hotchillee founder Sven Thiele confirmed that liquidators had been appointed, and said that the combination of the Covid pandemic and Brexit had added to the brand’s difficulties.
"It is with deep sadness that Hotchillee have formally instructed Ben Stanyon and Nedim Ailyan, of FRP Advisory Trading Limited, to assist us in placing the Company into liquidation in the coming weeks, due to financial difficulties experienced in recent years," the statement read.
It continued: "Despite our best efforts, the combination of internal matters, ongoing financial challenges following COVID-19 and the Brexit referendum, without sufficient capital injection to continue trading, the Director has sought for advice in dealing with the Company’s affairs.
"After 20 extraordinary years, this is a devastating blow to all of us at Hotchillee, as well as to our loyal community and Partners."
Amongst the many events it has previously hosted, the firm was set to organise the upcoming London-Paris gravel 2024 ride, Sri Lanka Gravel 2025, and Cape Rouleur 2025. However, Thiele’s statement confirmed that due to the company’s ongoing situation these events can no longer be delivered.
"The proposed Liquidators will be in touch with creditors shortly to outline options and next steps," it said. "We greatly value and appreciate our community, and we sincerely apologise for the abruptness of this announcement and the inconvenience it may cause.
"This is an incredibly difficult situation for everyone and your understanding and patience during this challenging time are greatly appreciated."
Hotchillee’s website has now closed and has been replaced with Thiele’s statement.
As well as Hotchillee, a raft of other major cycling brands, as well as race organisers, have faced similar financial turmoil in recent months. Earlier this year, the British race promoter SweetSpot entered liquidation.
Last year, Wiggle, the online cycling retail giant, was put up for sale after entering administration. The company was then acquired by Mike Ashley’s Frasers Group in March for £3 million plus VAT.
Cycling Weekly contacted Hotchillee for further comment in relation to this story.
