Wiggle CRC, one of the UK’s largest online bicycle retailers, is preparing to enter self administration, according to reports.
As first reported by Cycling Electric, this news has surfaced amidst a period of financial uncertainty for Wiggle CRC’s parent company, Signa Sports United (SSU).
Last week, SSU announced significant restructure plans and delisted from the New York Stock Exchange before Signa Holdings – parent company of SSU – rescinded a promise of €150 million of funding.
Pressure has also been felt down the line at Wiggle CRC. In September, the company recorded pre-tax losses of £97,041,000 in the year to September 30, 2022. This was a significant increase from the previous year, when it lost £14,555,000.
With Wiggle CRC relying on backing from SSU to be financially viable, it appears that there is no choice but to begin a self administration process.
Self administration is a process that protects a business from creditors and allows the company to continue trading while exploring its options to restructure and source new funding.
If this fails, appointed administrators will take control from directors to realise as much value as possible for creditors.
Wiggle CRC is the company behind both Wiggle and Chain Reaction Cycles, as well as brands Vitus, Ragley and Nukeproof, and in-house distributor Hotlines.
It remains unclear how this will impact UK businesses, but the recently launched American arm of Nukeproof appears to have already gone under with now former employees posting on LinkedIn that funding has been pulled.
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The ripples from such a large business in the cycle industry facing administration will extend beyond Wiggle CRC.
As such a large retailer that stocks thousands of products, external brands and distributors could also be facing losses if products haven’t been paid for.
BikeBiz has contacted Wiggle CRC for comment.
