Wiggle Chain Reaction Cycles put up for sale as it enters administration
Online retail chain had had a troubled couple of weeks as parent company prepares insolvency filings
Online cycling retail giant Wiggle Chain Reaction Cycles (WiggleCRC) has today entered administration.
The company, Wiggle Limited, posted that it had appointed administrations Alastair Massey and Anthony Wright of FRP Advisory in The Gazette.
A statement from the administrators said the business would continue to trade and that its staff of around 450 people had all been retained. It will be put up for sale.
Wright, partner at FRP, said: “WiggleCRC is one of Europe’s best-known sports retailers and has built a committed customer following in the cycling community.
"The administration provides a crucial period of protection for WiggleCRC as we prepare to market the business for sale. The group has a quality stable of brands and a leading market position, so we expect there to be interest and encourage potential buyers to come forward."
He added that all operations are continuing as normal and customer support was in place. Also, the customers' returns period is operating in line with the usual Wiggle terms and conditions.
In the latest WiggleCRC company accounts, which covered activities to 30 September 2022, the group revealed a pre-tax loss of over £97 million.
Get The Leadout Newsletter
The latest race content, interviews, features, reviews and expert buying guides, direct to your inbox!
Chief finance officer Adrian Bruce wrote in a statement accompanying the accounts that the group was "suffering from the aftereffects of the Covid pandemic". The directors also pointed to a fall in international sales caused by Britain’s exit from the European Union.
The administration comes after a period of financial turmoil for the retailer and its parent company, Signa Sports United (SSU), which saw €150 million of financing guarantees terminated by its ultimate parent company, Signa Holdings, earlier this month.
Several of SSU's European subsidiaries subsequently entered insolvency over the last week.
When parent company SSU announced its financial troubles at the start of October, it singled out its “bike segment” brands as underperforming. Just two weeks later, the company closed its North American bike division, which ceased all operations with a few days’ notice.
It is unknown at this stage what will happen to WiggleCRC’s stock, although it is likely its assets, and quite possibly the business as a whole, will now be put up for sale.
The group’s demise comes in a challenging year for the cycling industry. At the turn of 2023, British kit companies Presca and Milltag were forced to close down.
Long-standing distributor Moore Large then collapsed in March, with one of its competitors, 2Pure, following suit in May.
Wiggle and Chain Reaction Cycles merged in 2016 and the group was acquired by SSU in 2021. Later that year, SSU went public and listed on the New York Stock Exchange. The company chose to delist this October, citing "severe liquidity and profitability challenges".
If you've been affected by Wiggle entering administration in any way we'd like to hear your story, email: cycling@futurenet.com
Thank you for reading 20 articles this month* Join now for unlimited access
Enjoy your first month for just £1 / $1 / €1
*Read 5 free articles per month without a subscription
Join now for unlimited access
Try first month for just £1 / $1 / €1
Tom joined Cycling Weekly as a news and features writer in the summer of 2022, having previously contributed as a freelancer. He is fluent in French and Spanish, and holds a master's degree in International Journalism, which he passed with distinction. Since 2020, he has been the host of The TT Podcast, offering race analysis and rider interviews.
An enthusiastic cyclist himself, Tom likes it most when the road goes uphill, and actively seeks out double-figure gradients on his rides. His best result is 28th in a hill-climb competition, albeit out of 40 entrants.
-
The Oura ring reviewed: is this wellness tracker helpful to cyclists?
With its focus on recovery and wellness, the Oura ring offers unique insights but is it worth the investment over other wearables?
By Anne-Marije Rook Published
-
Shimano RC703 road shoe review: sleek, stiff and robust
Shimano's second-tier offering combines a rigid carbon sole with handy Boa dials and protective toe caps
By Sam Gupta Published
-
Heavy discounting cited in cycling company's collapse
Distributor i-ride, which owns bike brand Orro, held a 'huge overstocking clearance' this year
By Tom Davidson Published
-
'Decline in cycling' cited as Halfords profits fall
Store chain sees profits drop 25% year-on-year
By Tom Davidson Published
-
'Things remain tough for everyone in the trade': Cycling distributors unfazed by plummeting profits
Industry holds optimism for recovery, despite continued losses
By Tom Davidson Published
-
Wiggle sale revealed to be £3m to second-best Frasers Group
Business tycoon Mike Ashley scooped up intellectual property after initial deal fell through
By Tom Davidson Published
-
Cycling industry still 'appealing' to investors, despite turbulent post-Covid period
Brands suffered losses, bike shops closed and other areas of sector hit after pandemic, but industry should still be attractive
By Tom Thewlis Published
-
Introducing the start-up that helps cyclists find local mechanics and get a 'better service'
'We want to support the majority of the smaller, independent chains that are out there,' says Bikebook founder
By Tom Davidson Published
-
Major bike retailer posts profits despite 'downward trend' in cycling industry
Tredz records £1.4m profit after parent company Halfords issues warning
By Tom Davidson Published
-
Wiggle and Chain Reaction Cycles sites back online after Frasers Group takeover
The two brands have relaunched after a week off, with slightly different branding
By Adam Becket Published