By Betsy Welch
BENTONVILLE, Ark. (VELO) — Rapha has closed its North American office here, but the brand's CEO says the area remains its North American headquarters.
The U.K.-born company, acquired by the Walton family's RZC Investments in 2017, moved its North American headquarters to Bentonville in 2020.
This week, the company laid off six of the eight employees at the office, Rapha’s CEO Francois Convercey confirmed to Velo.
“We are realigning Rapha to better reflect our strategic priorities and current market dynamics. Over the past five years, Rapha has experienced significant growth and these recent changes will focus us on accelerating towards our purpose of inspiring the world to live life by bike," Convercey told Velo. "Organizational changes are always challenging, and I want to extend my gratitude to everyone at Rapha for their hard work — we will do everything we can to support those affected by the organizational changes. U.S. roles in Bentonville were impacted due to the consolidation of resources in London, but NWA [Northwest Arkansas] will remain the home of our North American Headquarters.”
Rapha's remaining customer service team in the U.S., as well as some positions in marketing and finance, were terminated. Rapha’s English-speaking customer service department will be outsourced to a London-based company called FoundEver.
In North America, Rapha products are sold through its website, its clubhouses and by some bike retailers, including Trek stores, Trek's e-commerce site, and Conte’s Bike Shop locations and website. The brand owns and operates 21 "clubhouses" around the world, which function as retail space, cafés, and meeting spaces for group rides and community events.
RZC Investments, controlled by Steuart and Tom Walton, the grandsons of Wal-Mart founder Sam Walton, also lists Allied Cycle Works and Wahoo as its other cycling-related investments.
According to Companies House, the British agency that handles corporate registrations, Rapha's parent company, CARPEGNA LTD, had sales of £118 million (about $147 million at the time) in the 12-month period ending January 29, 2023, the latest information available. The figure was down from £138 million in the 12-month preceding period, but up considerably from the £42 million in revenue Rapha recorded in the year RZC acquired the brand.
