Anyone interested in cycling might have bought gear from UK based Wiggle in the past.
They are currently in administration and have now announced they are ceasing international sales.
From the announcement:
"This part of the business has been impacted by a range of economic factors including rising international air freight costs and Brexit."
Wow, we have bought quite a bit of stuff off them over the years.
Just read an article on the issue, doesn't talk much about Brexit, actually nothing at all, the problem seems to be the German parent company an it's property portfolio falling over. The North American distributer suffered the same problem.
19th Oct:
Meanwhile, Mike Ashley’s Frasers Group identified as prime candidate to swoop for e-commerce business
Online cycling, running and swimming retailer Wiggle has reportedly entered voluntary administration in the wake of the funding crisis that has engulfed parent company, Germany-based Signa Sports United (SSU), after the company that controls it announced earlier this week that it would no longer be providing €150 million in funding to the business over the next two years.
The website
Cycling Electric reports(link is external) that it “has seen a notice from the company to a customer” which outlines that without securing an alternative source of funding to SSU (which was itself depending on the promised but withdrawn funding from controlling shareholder Signa International Sports Holding), Wiggle will “have no choice but to begin administration proceedings.”
Cycling Electric also points out that recent Companies House filings by Wiggle (whose immediate holding company is UK-based Mapil Topco, which also owns Chain Reaction Cycles) highlight that the company relies upon SSU for funding, without which the “group’s ability to continue as a going concern” would be subject to “material uncertainty.”
Earlier, Mike Ashley’s Frasers Group was rumoured to be the most likely candidate to buy Wiggle Chain Reaction Cycles (CRC) should it be put up for sale.
As we reported yesterday, Signa Sports United (SSU), which bought Wiggle CRC in 2021, has had promised funding of €150 million withdrawn by parent company Signa Holding, which is controlled by the Austrian billionaire René Benko.
Days earlier, SSU had delisted its shares from the New York Stock Exchange, two years after they were listed on it, citing “severe liquidity and profitability challenges.”
According to Bloomberg(link is external),
the withdrawal of funding and scaling back of retail activities comes as Benko seeks to shore up the finances of the commercial property business that underpins his fortune.
AND FURTHER ON THE ISSUE>
23rd Oct:
Signa Sports United, the owner of Wiggle Chain Reaction Cycles and several other cycling retailers, last week learnt that it could no longer rely on €150 million of committed funding from its parent company
The latest blow in the seemingly never-ending bad news cycle for Wiggle Chain Reaction and other cycling retailers owned by Signa Sports United (SSU) is that the company has closed its United States offices and is preparing to make insolvency filings.
The update comes from Bicycle Retailer and Industry News(link is external), SSU closing its Park City offices in Utah, the site which was home to operations for Vitus and Nukeproof, and was opened by Hap Seliga who said "an amazing group of people has been forced to swallow a bitter pill".
"Despite exceeding our top and bottom line Financial Year 2023 goals handily, Signa Sports United North America's bike division has been forced to cease all operations with less than a few days' notice. This was triggered Monday by a sudden reneging of a binding €150 million equity commitment to Signa Sports United N.V.
"To say this comes as a shock is an understatement. I haven't even begun to be able to process this yet."
The future of Berlin-based SSU was looking bleak from midway through last week after its parent company, Signa Holding, withdrew €150m of financing a week after it had delisted its shares from the New York Stock Exchange amid "severe liquidity and profitability challenges".
Signa Holding informed SSU – which also owns Bikester and Probikeshop – that it was terminating its unconditional equity commitment, funding which began in June 2023 and was deemed crucial to securing the company's future.
On Friday it was reported that the company is preparing to make insolvency filings for its subsidiaries in the coming days.
Earlier in the week, SSU had been critical of the withdrawal of the funding promise and said that ending the commitment of funds, needed to "cover the operating financial needs of SSU and to secure the ongoing concern", was "unjustified" and that "appropriate legal steps" would be taken.
"The Company considers the termination of the Equity Commitment Letter by SIGNA Holding unjustified," SSU said in a statement. "While the Company regrets the termination of the Equity Commitment Letter, it will take the appropriate legal steps in the interests of all its shareholders, creditors, and employees."
The parent company struggles meant further concerns for Wiggle Chain Reaction, the cycling retailer reportedly heading towards administration as a result
Mike Ashley's Frasers Group, which already holds Evans Cycles and
ProBikeKit in its portfolio, has been touted as the most likely candidate to buy Wiggle Chain Reaction Cycles should it be put up for sale.
And it was to that backdrop that, on Friday, Wiggle Chain Reaction announced an early start to the Black Friday sales on its websites, with up to 60 per cent off, prompting some concerns about spending with a troubled retailer.
Internetstores GmbH reportedly files for insolvency, affecting Fahrrad.de, Bikester, Probikeshop and more