British steel bike brand Temple Cycles is to close 12 years after its launch, with founder Matt Mears telling investors "I no longer believe the current model offers a realistic route to a sustainable business".
Mears, who started Temple in 2014 after graduating from the University of Bristol, wrote to investors by email this week, explaining the decision to wind down the business in its current form.
Temple reportedly crowdfunded £1.35 million in 2022, and Mears told investors he didn't expect to be able to return any of that money. However, he explained to BikeRadar today that they would be offered a stake in a new online-only parts and accessories business.
Mears said the "lion's share" of the company's staff have been made redundant, with its showrooms in Bristol and London closing, but that all outstanding customer orders have been fulfilled.
"Our shareholders backed Temple and put their trust in us," Mears wrote in an email to BikeRadar. "I’m sorry that the original business hasn’t delivered the outcome we hoped for. Offering them a stake in the new company is an important part of how we want to move forward.”
"Our final push"
Temple launched the Electric II ebike in June after releasing the Classic Disc flat-bar commuter bike, and opening a new high street store and workshop in Bristol in April.
However, Mears said in his email to investors that while the new ebike had been successful, ultimately the brand had been unable to survive what he called "an exceptionally difficult time to run a bicycle business".
In the email, initially reported by Bristol 24/7, Mears wrote: “You put your money and trust into Temple and I’m very sorry that the business hasn’t delivered the outcome we hoped for. I know this is disappointing news.”
After citing rising costs, supply chain issues and pressure on consumer spending, alongside a culture of heavy discounting, Mears wrote: “This year was intended to be our final push to return to profitability. Despite these efforts, we haven’t achieved the recovery we needed."
He continued: “The business also has existing debt commitments, and I don’t see a realistic route to generating the profits and cash reserves needed to meet them.
“Taken together, I no longer believe the current model offers a realistic route to a sustainable business.”
Based just south of Bristol, Temple built all its bikes from Reynolds steel from "100% recycled sources", prioritising longevity and sustainability.
The Temple range included the Classic city bike, the Road 1 and Road 2, the Adventure Disc gravel range and its electric bikes.
The brand also had a store and workshop on Brick Lane in London.
“I’m deeply grateful to the people who have worked at Temple," Mears told BikeRadar. "Their skill, care and commitment shaped the business, and I’m very sorry that we haven’t been able to preserve those jobs. I also recognise the impact of the liquidation on our creditors and shareholders.”
