Rapha lays off employees, closes North American office

Citing 'strategic realignment and current market dynamics' Rapha North America is reportedly closing its current Bentonville, Arkansas, and has laid off six out of the office's eight employees.

Rapha CEO Francois Convercey told Velo that these layoffs were a result of consolidation efforts made in the brand's global headquarters in London but that despite the layoffs, Rapha North America would continue calling Bentonville home. 

However, a different narrative is emerging from the employees. Speaking anonymously to Velo, one employee claims the terminations were due to 'non-performance reasons' and came as a surprise to the North American office, which had already weathered a round of job cuts in the fall as part of a global restructuring. 

Additionally, Rapha's North America Managing Director, Tom McMullen, reportedly stated that Bentonville office would in fact be closing as he transitions to a different role within the company and the other remaining Bentonville-based employee will work remotely. 

A Rapha spokesperson confirmed with Cycling Weekly that the consolidation efforts will not impact the Rapha clubhouse in Bentonville, one of the 22 retail and community centers the brand operates throughout the world, including eight in the U.S.

Rapha was founded in 2004 by Brit Simon Mottram and quickly became known for its high-quality cycling apparel, style, storytelling and racing affiliations. Enjoying global success, the brand expanded its operations to the United States in 2010 with an office in the bike-friendly city of Portland, Oregon. 

In 2017, Mottram sold the majority ownership of the company to the heirs of the Wal-Mart dynasty by way of RZC investments, controlled by Steuart and Tom Walton. In addition to owning Rapha, the Walton brothers hold investments in Allied Cycle Works and Wahoo Fitness. Additionally, the brothers are credited for turning Bentonville into a bike-friendly community and cycling destination. In transforming Bentonville into a bike town, Rapha relocated its North American headquarters from Portland to downtown Bentonville in 2020.

This is a developing story. We will share more news as it becomes available.