The boss of a bicycle retailer says he appreciates “the concern and questions” after the business applied to be allowed to appoint administrators.
Cycle Revolution sells bikes and cycling accessories, clothing and shoes across its branches in Colchester, Ipswich, and Norwich.
The family business which started in Suffolk in the 1980s filed the notice in court.
It allows businesses to take measures to prevent liquidation.
There is a 10-working day period where the company can sort out its finances before any creditor action can take place.
Cycle Revolution company director Darren Thomas said: "As you may have seen, a Notice of Intention to Appoint Administrators has been filed while we review the position and consider next steps.
"This is a testing time for everyone across the company, and I fully appreciate the concern and questions this may raise.
"Operations are continuing as normal, and we remain committed to supporting our customers and partners while working to protect the long-standing reputation of the business.
"We are working closely with professional advisers. As the situation is fluid, I’m not able to share further detail at this stage.
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"We are working towards an outcome that enables the business to continue trading. We expect this to conclude shortly, although timings are subject to change."
The Colchester branch, in Peartree Road, Stanway, opened in 2012.
Reacting to the news, Colchester Cycling Campaign said: “We hope Thomas’s, a family-run firm, manages to pull through. It is an excellent bike shop selling high-quality cycles and ebikes which offers a first-rate repair service.
“Cycling retailers enjoyed the equivalent of a gold rush in the Covid-19 pandemic when people took to bikes to get out of the house, especially during the 2020-21 lockdowns.
“Bicycle companies worldwide raced to meet demand but the result was vast over-supply and full warehouses. Millions of bikes and bike parts were left unsold in what has been called a boom-bust bullwhip effect.
“Market experts say the surge in 2020 and 2021 was a borrowing of future years’ sales. The question is still ‘when will the market return to normal?’.
"Sadly this is taking far longer than expected and until it does, the entire industry is in spasm."
Businessman Richard Thomas launched the retailer in 1984 and opened the first Thomas's Raleigh Cycle Centre, which stocked the biggest British cycle manufacturer at the time called Raleigh.
It was in 1993 when Thomas's Raleigh Cycle Centre became a franchise company and rebranded as Thomas's Cycle Revolution.
In 1998 two stores moved to a bigger and purpose-built premises in Colchester.
Brothers Paul and Darren Thomas grew up in the business, and both enjoyed success in cycling competitions.
They took joint control of the business in their 30s and Paul then left the business in 2018 to pursue other challenges.
You can find out more about the business at cycle-revolution.net.
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