Rapha has indicated that job losses may be on the horizon, issuing a statement that references a proposed “organisational restructure” and a “formal consultation process with affected team members.”
The announcement came on the same day that CEO Fran Millar revealed she was stepping down, cautioning that the company would undergo organisational changes aimed at cutting costs and boosting efficiency.
Later that afternoon, Rapha followed up with a statement outlining a series of business updates tied to what it described as its “ongoing transformation programme.”
The company said: “While there are encouraging green shoots, we believe significant changes are essential to establish a stronger, more sustainable path forward. This involves a proposed organisational restructure and a formal consultation process with affected team members will now take place. We believe these proposed changes are necessary but recognise the personal impact on affected colleagues, and we do not take these decisions lightly.”
According to Rapha, Millar informed the board she would step aside “to allow new leadership to guide the next phase” of the business, having already put her vision and strategy for the cycling clothing brand in place.
Millar arrived at Rapha in 2024, having spent time as CEO of Belstaff starting in 2020. During her tenure there, she helped steer the company from a £20 million loss in 2019 to breaking even by 2024.
At Rapha, she confronted a comparable challenge, as the brand had a long history of financial losses. For the period ending January 2025, Rapha posted a net loss of £15.6m.
Ahead of publishing its full accounts later this month, Rapha disclosed in today’s statement a trading loss of £5.6m for the financial year ending January 2026. That marks the ninth year in a row the company has recorded a loss, though Rapha insists it remains on track with its “financial improvement plan” to reach “sustainable profitability” by 2027.
“These numbers reflect deliberate decisions to invest in our brand, product quality, cycling communities and customer experiences, while reducing our reliance on discount and promotional related activities – choices that will strengthen the business over time,” the company stated.
Rapha also noted that early indicators in the current financial year point to its new strategy gaining traction, with revenue growth across key markets. It reported positive performance in its Clubhouses as well, even after shuttering five of them earlier in the year.
The brand pointed to its partnership with USA Cycling as a component of its “clear strategic roadmap” going forward.
Steuart and Tom Walton, grandsons of Walmart founder Sam Walton, acquired a majority stake in Rapha back in 2017.
In today’s statement, Steuart Walton commented: “My brother and I have been majority owners of Rapha for nine years. We love the brand, the product, and what Rapha stands for, and we are deeply grateful to the people who have made the company so special. Our belief in Rapha has not changed. We remain committed to the power of cycling to make the world a better place and to Rapha’s unique role in advancing that idea. We are confident in the long-term future of the brand and committed to helping Rapha achieve its ambitions.”
