There have been mass redundancies at Wiggle Chain Reaction Cycles (WiggleCRC), Cycling Weekly understands, with sources saying that almost every member of staff has now been laid off.
The online cycling retailer entered administration in October last year and was put up for sale. The company is yet to announce if a buyer has been found, but revealed that 24 parties expressed interest.
Today, Cycling Weekly understands that a significant proportion of the workforce has been made redundant. One source, who recently lost their job at WiggleCRC, said the company has “finally hit rock bottom”, with “hardly anyone left in the office”.
“I have no idea if it’s actually going to function as of now,” the source said.
Another source, impacted by the redundancies, said that “not everyone”, but “most of” the staff had been laid off. “A few are staying to help sell off the remaining stock,” they added. “Otherwise it’s game over.”
Some former staff members posted on LinkedIn on Wednesday afternoon, with one writing: "Unfortunately, my time is up, along with everyone else within the organisation."
It is unknown at this stage if the redundancies come as part of a sale deal for the business, or if it is now winding down.
The latest update marks at least the third round of layoffs made at WiggleCRC since it entered administration.
Within a week of the announcement, 105 jobs were axed, with staff impacted at Wiggle, Chain Reaction Cycles and in-house distributor Hotlines, across a range of company sites. A month later, there was a second round of redundancies, in which a further nine members of staff lost their jobs.
Sources now say that only “a few” people of the circa 450-strong workforce remain at WiggleCRC.
There are also doubts about the future of the company and its stock. Wiggle and Chain Reaction Cycles are currently offering extensive sales across their websites.
Among the parties reported to be considering a bid for the business were high street chain Halfords and retail group Frasers, run by Mike Ashley.
Wiggle’s woes began when its parent company, Signa Sports United (SSU), lost €150million of financing guarantees from its ultimate parent company, Signa Holdings, last November. Several of SSU’s subsidiaries have since entered insolvency, with some being sold off.
It is currently unclear what all of this could mean for the wider industry.
In October last year, industry insiders spoke of the “turmoil” that might ensue, should WiggleCRC trigger a firesale of remaining stock.
“We’re already flooded with cheap products at the moment and that cheap product is killing our ability in the industry to sell at a profit,” Luke Humphreys, owner of the UK-based wheel brand Pacenti told Cycling Weekly.
WiggleCRC owes money to a number of brands and distributors, with debts totalling £26.7m. However, a source at one of the creditors told Cycling Weekly that they were "recovering the cash" thanks to close cooperation with WiggleCRC’s joint administrators, FRP Advisory.
Cycling Weekly approached WiggleCRC's administrators for comment, which they declined to provide.
