Bespoke British bike brand Temple Cycles has closed down, it was revealed on Tuesday.
“It’s pretty tough times for us here at Temple, but also for the bike industry as a whole,” Matt Mears, the owner of the Bristol-based company told Cycling Weekly .
“I suspect so many other brands are seeing cash flow issues and being forced to make decisions they don’t want to make.”
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Mears blamed rising costs, widespread discounting across the industry and a squeeze on consumer spending for Temple’s shock demise, revealed in an email sent out to investors, which Cycling Weekly has seen, after original reporting by Bristol24/7.
He is looking to restructure the brand as an online-only parts and accessories focused business.
The business that became Temple Cycles was founded in 2014 by Mears when he was still studying engineering at Bristol University, and it has grown to become a much-loved part of the cycling landscape in the South West and beyond, with shops in Bristol, and London, and a servicing partner outlet in Berlin.
Temple Cycles produces a range of stylish steel steeds in its Bristol workshop, including as the steel-framed Adventure Road drop-bar commuter / tourer bike, as well as straight bar hybrids and fixies.
The company launched a crowdfunding campaign in 2022, which brought in over £1.3 million of investment capital, but in October 2023, Temple staged a flash sale, knocking nearly a third off the asking price of most of their bikes to clear out excess stock. Mears took to social media at the time to say the lockdown boom had ‘petered out’, leaving the company with a surfeit of “beautiful bicycles boxed up in our workshop without homes to go to”.
After that, business appeared to recover, and Temple opened a new outlet in the Bristol suburb of Clifton just seven months ago, incorporating a shop, mechanics workshop and an events space. A note on the Temple website says “New bike orders are now closed due to high demand”.
However, local news outlet Bristol 24/7 broke the news that Mears has sent an email out to investors this week, informing them that a combination of factors – including trade barriers, supply chain disruption, and rapidly rising energy and material costs – have conspired to make this “an exceptionally difficult time to run a bicycle business”.
In the communique, Mears explained to shareholders that the funds they trumped up are unlikely to be recovered, and extended an apology.
“Unfortunately, I do not expect any funds to be returned to shareholders through the winding down of Temple Cycles Ltd, though the proposed shares in the new company would give you a continuing stake in Temple’s future,” the email says. “You put your money and trust into Temple, and I’m very sorry that the business hasn’t delivered the outcome we hoped for. I know this is disappointing news.
“We’ve worked hard to turn the business around while managing persistent pressure on cash flow. We substantially reduced overheads, launched new products, relocated our headquarters and opened a new showroom.
“Our electric bike performed well, but this was offset by weaker sales elsewhere. This year was intended to be our final push to return to profitability. Despite these efforts, we haven’t achieved the recovery we needed. The business also has existing debt commitments, and I don’t see a realistic route to generating the profits and cash reserves needed to meet them.
“Taken together, I no longer believe the current model offers a realistic route to a sustainable business.”
Mears went on to express his intention to remain in the bike business, with a refined focus on parts, accessories and bags, saying he wishes to “apply what we’ve learnt over the past 12 years to a more sustainable business that preserves Temple’s ethos and continues to support the many Temple bikes already out there”.
In a statement sent to CW Mears said: “Our shareholders backed Temple and put their trust in us. I’m sorry that the original business hasn’t delivered the outcome we hoped for. Offering them a stake in the new company is an important part of how we want to move forward.”
The majority of staff have been made redundant. Mears said: “I’m deeply grateful to the people who have worked at Temple. Their skill, care and commitment shaped the business, and I’m very sorry that we haven’t been able to preserve those jobs. I also recognise the impact of the liquidation on our creditors and shareholders.”
