Evans Cycles, which has 60 stores across the UK, has been sold to Sports Direct owner Mike Ashley, for just £8m.
Immediately after the purchase, Ashley warned there will be hundreds of jobs lost throughout the firm.
The bike chain, which started in 1921 opening its first shop in South London, employs 1,300 people and put itself up for sale last month as it has struggled amid tough High Street conditions.
In a statement, Ashley commented: “We are pleased to have rescued the Evans Cycles brand. However, in order to save the business we only believe we will be able to keep 50% of stores open in the future. Unfortunately some stores will have to close.”
Evans is the second retailer in as many months that Ashley and his firm has rescued.