Rapha has hinted at staff cuts in a statement that says proposed changes to the company involve an “organisational restructure” and “formal consultation process with affected team members”.
Early on Wednesday, Rapha CEO Fran Millar announced her resignation, warning of organisational changes “to reduce cost and drive efficiency”.
In the afternoon, Rapha released a statement announcing several business updates as part of its “ongoing transformation programme”.
Rapha wrote in the statement: “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.”
Rapha said that, with Millar’s vision and strategy for the cycling clothing brand in place, the former CEO suggested to the board that she step down “to allow new leadership to guide the next phase” of the business.
Millar joined Rapha in 2024 having previously been the CEO of Belstaff from 2020, where she was involved in turning the company around from a loss of £20 million in 2019 to breaking even in 2024.
Millar faced a similar task at Rapha, which had long reported financial losses. Last year, Rapha reported a net loss of £15.6m for the period ending January 2025.
Ahead of its full accounts being published later this month, Rapha revealed in its statement today a trading loss of £5.6m for the financial year ending January 2026. This is the ninth consecutive year Rapha has posted a loss, but it said it continues to execute its “financial improvement plan” for “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,” Rapha said.
Rapha added that the early signs in its current financial year suggest its new strategy is working with revenue growth in key territories. It also reported growth in its Clubhouses, despite closing five Clubhouses earlier this year.
Rapha highlighted its partnership with USA Cycling as part of its “clear strategic roadmap” for the future.
The grandsons of Walmart founder Sam Walton, Steuart and Tom Walton, bought a majority share in Rapha in 2017.
In Rapha’s statement today, Steuart Walton said: “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.”
