Reports: Snow And Rock Parent Plans Significant Store Closures

Various UK media outlets are reporting that AS Adventure, parent company of both Cotswold Outdoor and Snow and Rock could be about to close stores after reports emerged it's French owner was looking into cost cutting.

AS Adventure, also runs Cycle Surgery and Runners Need, and curently operates 120 shops on high streets across Britain. AS Adventure, is owned by PAI Partners, a Paris-based private equity firm, and has a UK turnover of £190m, employing around 1,200 people in Britain.

But reports from Sky News say it is planning to make significant reductions to their UK operations.

A spokesman from AS Adventure owner PAI Partners told Sky "Given the difficult market environment, the company is looking at a range of cost-cutting initiatives,"

"As part of that, it is possible that stores may be closed as an adjustment to the estate but it is way too early to say.

"No decision has been taken on any store closure and no advisers have been appointed."

Closures of Snow and Rock outlets will have a significant impact on the U.K. snowsports industry with a number of suppliers replying on Snow and Rock purcahses made at low margin but guarenteeing minimum orders. Suppliers at this week's UK trade snow will have to decide how much, if at all to rely on orders from Snow and Rock.

For the year to 31 December 2017, the retailer increased revenue to £197m, up from £191.6m in the previous year.

However adjusted REBITDA was flat, at £7.1m compared with £7.2m the year before.

During the year the company opened two new Cotswold Outdoor and Runners Need combined stores. However Cycle Surgery, closed five stores citing challenging trade and pressures on property costs.

A statement accompanying the results read: "Despite trading conditions being challenging, caused by a variety of reasons including macro-economic conditions and direct competition applying a discount led strategy, total revenue grew by 3 per cent to £197.3m (2016 £191.6m).

"Cotswold Outdoor, the largest fascia within the company traded flat on a LFL basis during the year, whilst the Snow and Rock Group fascia saw an increase in LFL revenue of 5 per cent. During the year, two new Cotswold Outdoor and Runners Need dual stores (Biggleswade and Bagshot) were opened, next to a Snow + Rock flagship store in Bluewater, in combination with a Runners Need.

"On the other hand, due to challenging trade and pressure on property costs, especially across the Cycle Surgery fascia, five stores were closed during the later stages of the year.

"The integration of the Snow and Rock Group has continued to be a focal point for the business, with particular attention now on our employees within the stores: terms and conditions of employment have been aligned with a clear focus on offering a competitive compensation and benefits package across all fascia.

"To support the ongoing transition, the executive team was completed and a broader management team was installed, with significant experience from both within the outdoor industry and from wider industries.

"With these leadership foundations and committed experts in place, the company is in a strong position to progress and meet its aspirations and uphold the key values of the business which are focused around its customers, people and culture."

The AS Adventure Group announced the acquisition of the Snow & Rock Group from LGV Capital on  29 May 2015