Wiggle Chain Reaction Cycles, the cycling, running and swimming ecommerce giant, has entered administration, meaning that the direct running of the business has been handed over to administrators appointed by the court.

In a statement, the administrators have said they are preparing to sell the business, writing, “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.”

At present, all staff of WiggleCRC have been retained by the administrators.

On Friday morning, Wiggle Limited was listed on the Insolvency Notices in The Gazette, the United Kingdom’s official public record, showing that Alastair Rex Massey and Anthony Wright had been appointed to take control of the business.

Entering administration will give Wiggle some breathing space to protect them from creditor enforcement actions. From here, the company administrators will now begin the process of shutting down the business.

Wiggle Chain Reaction Cycles has been in financial difficulty for some time, with economic struggles following the pandemic and Brexit. Last week, rumours emerged that the company would enter administration.

In previous statements from Wiggle, explaining their consistent losses in recent years, CFO Adrian Bruce said the business was, “suffering from the after effects of the Covid pandemic”.

• Read more: ‘WiggleCRC entering administration could have a huge impact on the bike trade’ says industry expert

Warning signs

Earlier this month, the parent company of Wiggle Chain Reaction Cycles, Signa Sports United (SSU) – not to be confused with competitor Sigma Sports – announced plans to restructure the business and delist from the New York Stock Exchange so it could resolve “severe liquidity and profitability challenges” following the pandemic.

The restructure, SSU said, would include, “the termination or winding down of non-performing assets.”

SSU specifically highlighted cycling as an under-performer, stating that cycling brands “continued to lag management expectations.”

Days later, SIGNA Holding, the parent company of SSU, terminated €150m funding. It wasn’t clear whether SSU would be able to continue.

Under increased pressure from above, Wiggle CRC faced trouble. The brand had previously stated that Wiggle CRC “relies on funding from its shareholder, Signa Sports United GmbH.”

Subsequently, rumours emerged last week that the brand would enter self-administration, wherein the business could reorganise its finances itself under the same protection from creditors.

On Friday, we learnt that the plans to self-administrate appear to have collapsed; Wiggle CRC entered administration on October 24.

What happens to my order?

If you’ve recently ordered from Wiggle, do not fear. In a statement released today, Wiggle said, “all orders made with Wiggle will continue to be delivered as usual, and our standard terms and conditions still apply for item returns and warranty claims.”

For the time being, Wiggle will continue to trade. At the moment, the priority seems to be shifting some of their enormous pile of stock. In their latest accounts, Wiggle Limited’s inventory was valued at £78m.

Wiggle launched its Black Friday deals on Monday, over a month before actual Black Friday, which is on November 24.

About Wiggle

Wiggle is an online retailer for cycling, triathlon and outdoors equipment. After beginning as a local bike shop in 1995, it has been trading under its current name since 1999.

Between 1999 and 2009, Wiggle experimented with online retailing and quickly became a force to be reckoned with.

In 2016, Wiggle merged with competitor Chain Reaction Cycles to become Wiggle CRC. Wiggle and Chain Reaction Cycles were already the number one and number two biggest global online cycling and triathlon retailers.

After changing hands a number of times, Wiggle CRC became part of Signa Sports United (SSU), a global group of sports retailers, in 2021.

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https://www.globalcyclingnetwork.com/general/news/wiggle-chain-reaction-cycles-goes-into-administration