“We are incredibly grateful for Antony Batty & Company’s professionalism and the ease they brought to a tough situation.”
For over 40 years, Brixton Cycles stood as an iconic name in the cycling world – a worker-owned cooperative serving its community with quality bicycles, repairs, and accessories. However, despite best efforts, the business faced mounting financial difficulties that eventually led to its closure in April 2025. This case study, by Nitin Joshi, one of our partners explores the challenges Brixton Cycles faced, the reasons for its financial struggles, and why a Creditors Voluntary Liquidation (CVL) became the only viable solution, despite the company’s best efforts to survive.
A legacy of passion and community
Founded in 1983, Brixton Cycles started as a workers’ cooperative, built on the principles of shared ownership and community spirit, and using the Enterprise Allowance Scheme to get the business started. Over the decades, it adapted to changes, relocating multiple times to keep pace with economic and environmental shifts. In 2016, the business moved to Brixton Road following a forced relocation, securing what appeared to be a high-footfall trading location.
Financial struggles and attempts to recover
While the relocation ensured visibility, it also came with higher costs. The business responded by:
- Extending opening hours (8 AM–6 PM, including Bank Holidays)
- Crowdfunding campaigns to assist with financial pressures
- Restructuring employee benefits, cutting pensions and sabbaticals
- Diversifying revenue streams (custom bike builds, online sales, partnerships with insurance agencies)
The post Covid -19 world
Despite these strategic efforts, Brixton Cycles faced severe financial setbacks. The Covid-19 pandemic, which saw an uptick in cycling activity provided some temporary relief, but the post-pandemic drop in cycling demand led to further declining revenues, which hit the company hard. A four-week power outage in 2023 compounded difficulties, forcing another crowdfunding campaign to help with the debts that had been building.
The directors continued their best efforts to keep the business open and cut back on everything they could, including staff hours. In addition:
- Cutbacks were made on all outgoings deemed unnecessary.
- The Directors spoke with suppliers to negotiate better payment terms and providing big ticket items on a sale or return basis.
- In an effort to increase turnover, products were purchased that had better margins.
- Labour pricing for cycle repair/maintenance work was also increased.
- The Directors also instigated negotiations with the landlord for the reduction in size of the rented unit in exchange for a more affordable rent payment.
Why a Creditors Voluntary Liquidation was the only option
Factors influencing the decision included:
- A flood from the flat above, causing stock losses and trading disruptions
- Significant declines in sales and foot traffic
- Director resignations, further reducing operational capacity
After careful consideration, the remaining directors concluded that the business could no longer survive, sought professional insolvency advice and decided to enter Creditors Voluntary Liquidation. Antony Batty & Company were appointed as the Liquidators.
Why Antony Batty & Company was appointed Liquidator
Facing an uncertain financial future, Brixton Cycles’ directors turned to Antony Batty & Company LLP, seeking expert guidance in navigating insolvency. A Director commented:
“When our company’s financial difficulties got too great and we felt we could no longer continue, I did a quick Google search and came across Anthony Batty and Company. I reached out through their website, and Nitin Joshi, a partner, responded right away. From the very beginning, he provided invaluable guidance and support. No matter the question, he was always available to help, offering clear and thorough information. He really understood our position and it felt as though he went above and beyond to assist us.
After obtaining other quotes, it was clear that Anthony Batty was the best choice by far. They supported us every step of the way, especially during such a difficult and uncertain time for our small business. While the situation was obviously very challenging, their team made the process as manageable as possible. We are incredibly grateful for their professionalism and the ease they brought to a tough situation.”
The Role of a CVL in business closure
Brixton Cycles’ case highlights the reality of insolvency, where businesses can fight to survive but ultimately face challenges beyond their control.
As Nitin Joshi says:
“The business did all it could to turn things around. It did well immediately after Covid but a bit like new dog owners at the time, many people lost their interest in cycling once the pandemic was over. If it could have surpassed the immediate challenges, it could have done well, as recent figures indicate that participation in cycling has gone up by 50%. However, core debt can be like glue, it sticks. Ultimately, it was a great shame for such an iconic name in the cycling world with an international reputation to have to close, but there was no other alternative.”
A Creditors Voluntary Liquidation provided a structured, legally compliant exit for the company, ensuring:
- Protection from legal claims by creditors
- A managed process for asset liquidation
- Closure with expert guidance and support
For company directors facing financial uncertainty, this case study demonstrates the importance of professional insolvency advice. Antony Batty & Company LLP provided clarity, reassurance, and expertise, making the Creditors Voluntary Liquidation process as smooth as possible.
