In a short statement on Friday, Rapha's CEO, Fran Millar, outlined the closure of five branches of the brands Rapha Cycle Club (RCC) venues: Boulder, Chicago, Manchester, Miami and Seattle. The earliest closure will take effect as early as January 18, affecting the Manchester branch of the RCC.
Rapha's clubhouses, the first of which opened in London in 2012, boasted 23 venues worldwide until this announcement, each of which aimed to blend a traditional retail space with extra amenities like a café, and spaces for events – a concept that was certainly novel, and even pioneering in the cycling market back in 2012.
Of the clubhouses, Millar said: "Rapha's Clubhouses are cultural anchors for the Rapha community worldwide, run by brilliant, hardworking teams that are our brand's greatest advocates. They are places to belong, to be inspired, and to discover our products."
While this is necessarily bad news for those working in these retail spaces, as well as the RCC members local to them, it is clear both from Millar's statements on the closures, and Rapha's recent financial woes, that the need for streamlining parts of the business is paramount.
"Closing these Clubhouses means we can focus on richer customer experiences at flagship locations, regional rides and events, and online worldwide," Millar continued. "I have been honest that we need to make changes at Rapha to bring greater focus. 'Simpler, better' is the guiding principle behind this decision. It is a painful decision but it is the right call for the brand and our customers in the long-run."
Given the fact the clubhouses functioned not only as retail spaces, but as the base of operations and a social locus for club rides, there will undoubtedly be concern for regular attendees, but we have been informed that the brand is committed to continuing its provision of ride leaders for the remainder of the year, partnering with local venues (i.e. cafés) to facilitate.
Rapha also clarified that the closures of these five clubhouses was due to the properties' leases coming up, but others such as the new location in Shanghai and a 'new vision' for the location in Bentonville, Arkansas demonstrate that the company isn't scrapping the whole concept.
The company is also committed to maintaining its presence in the five communities through the Ride Leader programme, partner cafés and local retailers.
Rapha's financial headaches have been well covered, with the brand reporting a £21m annual lost last year, marking the 8th loss making year in a row. It has pulled out of the WorldTour and its long running sponsorship deal with the EF Pro Cycling. It's closed its North American office, resulting in staff layoffs at the start of 2024, before appointing Fran Millar as its new CEO.
Since then, its focus has appeared to be on consolidating what works and looking longer term, with a sponsorship deal with USA Cycling penned for the 2028 Olympic games in Los Angeles.
It is unclear whether further clubhouses, including one based in Los Angeles, are part of the long term plan. Cyclingnews has approached Rapha for comment in this regard.
