BikeBiz Bicycle and cycling retail news
Wiggle, the UK’s largest online cycle retailer, has entered administration.
The company posted on The London Gazette that it had appointed administrators on Friday, October 27.
Alastair Massey and Anthony Wright, both of FRP Advisory, will handle the process to realise assets for creditors.
The news comes after weeks of uncertainty for the company after its parent company Signa Sports United (SSU) faced significant financial challenges.
Earlier this month, 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restructure plans and delisted from the New York Stock Exchange before Signa Holdings – parent company of SSU – rescinded a promise of €150 million of funding.
This withdrawal of funding had already impacted multiple subsidiaries of SSU with Tennis-Point GmbH and Internetstores already declaring insolvency in the last week.
With Wiggle also relying on that backing from SSU to be financially viable, it appears there is no alternative but to begin the administration process.
Wiggle CRC is the company behind both Wiggle and Chain Reaction Cycles, as well as in-house brands Vitus, Ragley and Nukeproof, and its distributor Hotlines.
It is unclear exactly how this will impact UK businesses in the immediate term, but BikeBiz understands that Hotlines has been operating on a proforma only basis for its accounts in recent days.
The financial woes of Wiggle CRC have accelerated significantly in the last two years.
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.
Read more: Islabikes to cease production of bikes
The ripples from such a large business in the cycle industry entering administration will extend beyond the walls 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.
