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Planet X makes significant redundancies – says it is looking to become a more flexible business

Spokesman cites difficulties meeting surges in demand

Planet X is reported to have made almost half of its staff redundant. The Yorkshire firm, which designs and builds Planet X, On-One and Titus products, says it is restructuring to become sufficiently flexible to meet future surges in demand.

BikeBiz has suggested that Brexit was being blamed for the redundancies, but Planet X founder and CEO Dave Loughran said this was not the case.

A spokesman said: “After 28 years we are still founder and enthusiast owned. As such, we have no external pressure to deliver huge profits for shareholders. Our passion and reputation for designing and manufacturing performance products at great value sets us apart.

“This passion and reputation continues to grow. In fact this past year has seen sales at record highs, coupled with the spikes generated by our notorious sales, we were acutely aware that our operational capability was not flexible enough to cope with such surges in demand.”

The firm will therefore be making use of Abbey Personnel Services, a Selby-based recruitment specialist. It says this will allow for greater flexibility while reducing fixed costs.

The firm has recently added former World Triathlon Champion Spencer Smith to its design team and says a new line-up of bikes, clothing and accessories is on the way.

Alex has written for more cricket publications than the rest of the road.cc team combined. Despite the apparent evidence of this picture, he doesn't especially like cake.

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55 comments

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OldnSlo | 8 years ago
0 likes

Well; so the buy'em for naff all sell'em for substantially more model is screwed. For companies like planetx/ribble it'll be a race to the bottom. First to suffer will be the staff, after that, maybe the customers - short term staff paid naff all, tend not to.be invested in the future of their employers. They're normally looking for a better paid future role.
Buying direct maybe the 'future', for many of us.

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Batchy | 8 years ago
0 likes

Sounds a bit like WiggleCRC then ! So why don't you give them the same flak ?

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gunswick | 8 years ago
3 likes

I agree, a pro carbon previously looked attractive - not anymore....

A suggestion though, writing to them direct will make a much bigger point than comments here.

Ribble though is now worth a look - assuming they are aren't jobsworths as well?

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ped | 8 years ago
0 likes

And so Italian online bike retailer 'Pianeta X' buy up a warehouse of new old stock from northern England … 

Seriously though, that's rotten for all concerned. Hope they can turn it around, but it won't be easy in the current and what could well be future climate.

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Welsh boy | 8 years ago
4 likes

Do you people saying that you will stop using them realise that you are putting the future of the remaining staff at risk?

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davel replied to Welsh boy | 8 years ago
6 likes
Welsh boy wrote:

Do you people saying that you will stop using them realise that you are putting the future of the remaining staff at risk?

Play that back to yourself.

A successful British bike firm, during peak bike years, slashes its workforce to be 'more flexible'.

Some disgusted customers say they won't buy from the firm again.

You blame the customers for putting remaining employees at risk.

Hello, Mike Ashley.

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Dnnnnnn replied to davel | 8 years ago
1 like

davel wrote:
Welsh boy wrote:

Do you people saying that you will stop using them realise that you are putting the future of the remaining staff at risk?

Play that back to yourself. A successful British bike firm, during peak bike years, slashes its workforce to be 'more flexible'. Some disgusted customers say they won't buy from the firm again. You blame the customers for putting remaining employees at risk. Hello, Mike Ashley.

It would be better to write to them too, telling them why you're withdrawing your custom. Otherwise all they see is a loss of business and may seek to respond by cutting more cost (workers) or having more short-term promotions that don't help sustain permanent jobs.

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bialbero124 | 8 years ago
1 like

I have a Planet X track bike and have bought from them regularly over the years. I know they import nearly all of what they sell but I liked the idea of supporting a UK business smaller than the online giants. Not any more.

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handlebarcam | 8 years ago
6 likes

I've bought from them before, not any more. On-One can do one.

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burtthebike | 8 years ago
6 likes

Have they asked the government for the same deal Nissan got?  The one the government won't tell us about?  The one that will cost tax-payers billions over the next twenty years?

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kil0ran | 8 years ago
7 likes

I'd always seen them as rebellious, anti-industry (Pompino, Kaffenback, Dirty Disco et al) but this just makes the yet another exploiting employer. Staff being punished for success and hard work...

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kil0ran | 8 years ago
8 likes

Ah well, that's them off my list. Shame, as I've liked their bikes and approach (until now)

 

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Argos74 replied to kil0ran | 8 years ago
2 likes

kil0ran wrote:

Ah well, that's them off my list.

Same here. Have been mulling over a flat bar conversion of the XLS as a quick commuter bike. But this is pretty shabby.

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bjeato | 8 years ago
6 likes

Disappointing. As others have said, looks like a move to zero hours contracts and "flexible" working practices.

I don't know how many other companies I have or do purchase from use this (there's probably a list out there somewhere) but it certainly colours my opinion of them as a company/owner. Enough to not purchase from them again.

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bikebot replied to bjeato | 8 years ago
3 likes

bjeato wrote:

Disappointing. As others have said, looks like a move to zero hours contracts and "flexible" working practices.

I don't know how many other companies I have or do purchase from use this (there's probably a list out there somewhere) but it certainly colours my opinion of them as a company/owner. Enough to not purchase from them again.

It's the problem with such employment practices, along with interesting arrangements for corporation tax they're contagious.  Once a company has competitors that adopt them, they're under commercial pressure to do the same.

Flexibility and zero hours is actually something I'm OK with as a principle.  What I'm not OK with, is its use as a way to avoid basic employment rights.

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tritecommentbot | 8 years ago
5 likes

Hated agency work. Always had it in my mind that 10 minutes of every hour worked was going to support a recruiter. Enough to make you feel a bit stabby.

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Slartibartfast | 8 years ago
6 likes

I have steadily decreasing respect for this company, and this has taken a big chunk out of it. I think it was Dave Loughran who said he modelled their fake sales on Mike Ashley and Sports Direct, and it seems they've been inspired by some of their employment practices as well.
Poor employees.

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EddyBerckx | 8 years ago
8 likes

Ah, zero hours contracts then? Or just minimum wage with minimal benefits?

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Hamster | 8 years ago
0 likes

Next up will be news of egregious tax avoidance or even evasion.

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Hipshot | 8 years ago
9 likes

"More flexible" = we will be sacking and rehiring, then treating our workers like sh*t.

Sports Direct had a similar attitude.

And this is  an industry that is still booming, is this the best we can do as a country?

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mike the bike | 8 years ago
5 likes

 

I'm with Greg on this one, they are simply reducing costs by using agency labour.  Some of their stuff is so cheap I guess they have to do what they have to do .....

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rliu | 8 years ago
4 likes

Wouldn't be surprised if Brexit is the real cause, it's just that any company who says so gets shouted down these days. If Unilever had to backtrack for putting its head above the parapet then a company a hundredth of the size has no chance.

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DrG82 | 8 years ago
7 likes

Considering their business model of buying everything in from abroad and selling it cheap I imagine they've taken a beating with the recent devaluation of the £.

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bikebot replied to DrG82 | 8 years ago
6 likes

DrG82 wrote:

Considering their business model of buying everything in from abroad and selling it cheap I imagine they've taken a beating with the recent devaluation of the £.

That's sort of the business model of 90% of UK retail business.

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Manchestercyclist | 8 years ago
15 likes

So they're essentially farming out employment to an agency and therefore avoid some employer responsibilities.

I've worked for a number of these agencies, they do very well out of it. The loser is the employee.

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