Supermarkets are known for buying the cheapest bikes they can get their hands on – often at the expense of comfort and reliability – and them selling them on in bulk for a tidy profit.
But not British retail giant Tesco – according to legal papers filed at the High Court in London, the company shelled out £984,000 for just six Muddy Fox mountain bikes in August.
Since the accounting error was discovered – the full-suspension bikes should have cost just £984 – the company has done its best to reclaim the money from Essex-based Universal Cycles, according to a report in the Daily Telegraph.
Muddy Fox's parent company, a subsidiary of Sports Direct, has allegedly paid back £863,000 but Tesco is demanding a further £121,000. Attempts to settle the dispute out of court have failed. The supermarket hopes to recover the remaining money, legal costs and £1,783 interest.
Universal Cycles declined to comment when approached by BikeRadar. At time of publication, we had not received a response from Tesco.
