BikeBiz Bicycle and cycling retail news
The future of Wiggle CRC and its associated brands looks set to be confirmed with multiple outlets reporting Mike Ashley’s Frasers Group has purchased the business.
As initially reported by The Times, the group, now run by Ashley’s son-in-law Michael Murray, has purchased the cycling and multisport business for less than £10 million.
This deal includes the intellectual property of in-house brands, Nukeproof and Vitus bikes, dhb clothing and Lifeline accessories.
All 447 of Wiggle CRC’s employees are expected to lose their jobs as part of the purchase. A large portion have already been made redundant with a skeleton staff servicing orders while remaining stock is sold.
This includes at distributor Hotlines which is likely to cease trading once the administration period ends and a restructure begins.
According to The Times’ report, the Frasers Group was attracted to Wiggle CRC’s digital footprint, with strong social media and online presence a key aspect. The business will join Evans Cycles and ProBikeKit in the Fraser Group’s growing cycling portfolio.
This signals the end of the saga which started in October last year when Wiggle CRC entered administration.
The news came after weeks of uncertainty after its parent company – Signa Sports United (SSU) – faced significant financial challenges.
In October, 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restructure plans and delisted from the New York Stock Exchange before Signa Holdings – parent company of SSU – rescinded a promise of €150 million of funding.
The withdrawal of funding had already impacted multiple subsidiaries of SSU with Tennis-Point GmbH and Internetstores already declaring insolvency.
With Wiggle relying on that backing from SSU to be financially viable, there was no alternative but to begin the administration process.
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.
