Brompton sells stakes to Decathlon and Chinese Labubu backer | Manufacturing sector

French sporting goods retailer Decathlon and a Chinese investment group that was an early backer of Labubu soft toys have bought a stake in British folding bike maker Brompton after its boss said the cycling market was starting to recover after a slump in sales.

Decathlon bought a 10% stake in the manufacturer, while BA Capital bought a 5% stake in a deal understood to be worth around £18m collectively.

Brompton said the new investments would enable staff, including CEO Will Butler-Adams, and long-term investors to raise some cash from the share sale, while also bringing market knowledge, supply chain efficiency and technology from the brand’s new investors.

“We’re in this partnership to learn,” Butler-Adams said of the new deal with Decathlon Pulse, the chain’s investment arm that previously backed brands such as cycling computer maker Magene and sports watch Coros.

He said BA Capital, which has a stake in bicycle brand Tenways as well as Labubu maker Pop Mart, would bring expertise to China, currently Brompton’s biggest market.

Franck Vigo, managing director of Decathlon Pulse, said: “What convinced us goes beyond the product: we share the same values, a strong culture of quality and a long-term vision of sustainable urban mobility. This partnership is about scaling this model while preserving what makes Brompton truly unique.”

Brompton bikes, which cost between £999 and almost £6,000 for a top-of-the-range titanium e-bike, will find their way into dedicated “Brompton corners” in a handful of Decathlon stores for the first time.

“We want to bring our bikes to a wider audience,” Butler-Adams said. Despite cost-of-living challenges that continue to hinder new bike sales in Europe, he said the industry was now “at its worst” after a collapse in sales following the pandemic boom and “cycling is on the rise”.

Cities around the world are adding bike lanes because of growing interest in healthy living and pollution-free transportation, he said.

Butler-Adams said many shareholders supported Andrew Ritchie, who designed the motorcycle and founded the company in his shed in 1975, and staff needed the opportunity to raise money from the sale of some of their share premiums. Ritchie remains the largest shareholder.

“Many shareholders have owned shares for 50 years,” Butler-Adams said, and many are now in their 80s or have passed their investments on to their children. “These shareholders have been incredibly supportive overall, but they also have to live their lives.”

Butler-Adams took over in 2008 and acquired a significant stake in the business after a conversation on a bus with the company’s then-chairman convinced him to scrap his MBA plans.

Butler-Adams told the Guardian she mortgaged her house to support Brompton through some tough times. A boom in bike sales during the pandemic turned into a bust as households reined in spending on new bikes as roads became busier and returned to offices and schools.

He said the UK did not do enough to encourage and support entrepreneurs who showed “huge personal commitment” to growing a business, which meant “most people go and work for a bank or consultancy”.

“We need to create an environment that is ambitious about creating jobs and wealth,” he said.

He added that the UK government should crack down on the sale of illegal e-bikes; these e-bikes were dangerous “not just because they went so fast, but also because of the way they were built,” which in some cases led to battery fires.

“Well-made quality e-bikes are fantastic for society and we have evidence of this in Northern Europe,” he said. “[But] Weak control of illegal e-bikes hinders e-bike market [in the UK].”

Brompton has been forced to reduce staff numbers due to increases in employers’ national insurance contributions and other tax changes, with its workforce falling from around 50 to 790 people. The number of bicycles sold decreased by 7.5% compared to March 2025, falling to 78,530.

The total value of its sales fell 1% to £121.5m, but pre-tax profits rose to £130,476 from less than £5,000 the previous year as the company cut costs.

Butler-Adams said sales rose slightly through March 2026 but profits fell due to the company’s decision to invest in expansion, including new stores and new versions of its bike.