Fran Millar (shown right) has stepped down as the CEO of Rapha after two years in the role. Her departure comes as the British cycling apparel brand posted its ninth straight year of losses and plans a major organizational restructuring aimed at cost-cutting and driving efficiency.
In an Instagram post published on Wednesday, Millar said her “vision and strategy” for Rapha are set in place “and the path ahead for the brand is clear.”
Millar wrote: “What remains is delivery. To support that, the business will make significant organizational changes to reduce cost and drive efficiency, and those changes call for a different governance and leadership structure. With that in mind, I proposed to the board that I step down as CEO.”
Millar joined Rapha as CEO in 2024. Previously, she was the CEO of Belstaff, which she joined in 2020 to turn around from an annual loss of £20 million in 2019. The clothing company broke even in 2024. She previously held senior roles with Team Sky and the Ineos Grenadiers.
Rapha released a statement confirming Millar’s exit and announcing plans for several business updates as part of its “ongoing transformation program” that will include job cuts.
Rapha said, “With a new vision and strategy in place, CEO Fran Millar suggested to the Board that she step down to allow new leadership to guide the next phase, a decision the Board has accepted.”
Ahead of its full accounts being published later this month, Rapha revealed in its statement Wednesday that it reported an operating loss of £21.2 million ($28 mm) and a net loss of £25.3 million ($33.6 mm). That compares with a £17.2 million operating loss and a £15.6 million net loss in the previous financial year and marked its ninth consecutive year in the red.
Rapha’s revenues fell to £89 million ($117.5 mm), down from £96 million the prior year and £110 million pounds two years earlier. Sales peaked at £131.7 million in the year ended January 2021 on a pandemic benefit.
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 organizational restructure and a formal consultation process with affected team members will now take place. We believe these proposed changes are necessary but recognize the personal impact on affected colleagues, and we do not take these decisions lightly.”
Rapha in its statement indicated 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.
On the positive side, Rapha’s reported show Rapha Cycling Club membership sales increased 18 percent an on improved performance at some of its Clubhouse locations. Rapha also highlighted its new partnership with USA Cycling as part of its “clear strategic roadmap” for the future.
The statement further indicated that Rapha’s majority owners, Steuart and Tom Walton via their private equity firm RZC Investments, remain fully committed to the brand. The two brothers, who are the grandsons of Walmart founder Sam Walton, acquired a majority stake in Rapha in 2017.
In Rapha’s statement, 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.”
Images courtesy Rapha
