Wiggle CRC

SIGNA Sports Financial Woes: Wiggle officially now in the hands of Administrators

by 56

UPDATE: Friday 27th October

Wiggle CRC have entered administration as of today. No ‘Self Administration’ this time – they have called in the administrators to run the company. Administrators will attempt to realise the value of the business on behalf of its creditors which in most cases simply means the company is now up for sale. How this plays out over the coming days and weeks is hard to say, but it does mean a great deal of chaos is set to envelope a large section of the bike industry, from customers with orders or returns in the system to suppliers who may or may not have been paid for their orders.

Any party who ends up being owed money by WiggleCRC will ultimately go into an ordered list of creditors to be paid out of any proceeds the administrators manage to raise from a sale. Priority is often given to creditors like the banks and HMRC. The rest of the creditors will paid out of what is left, in anything.

The appointment of administrators was officially announced today in the Gazzette.

Wiggle also published this statement on their website.

Following the making of the Administration Order on 24 October 2023, the affairs, business and property of the Company are being managed by the appointed Joint Administrators  Anthony John Wright and Alastair Rex Massey.
 
The Joint Administrators act as agents of the Company and without personal liability.
 
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.

Wiggle.com

After a week of bad news from SIGNA Holdings and SIGNA Sports United, the unhappy conclusion appears inevitable, as SIGNA Sports United (SSU) is reported to be entering self administration. This matches up with evidence we’ve seen and sources we’ve spoken to this week.

Wiggle CRC

In September, Wiggle CRC reported a £97m loss. Then last week, parent company SSU delisted from the New York Stock Exchange. SIGNA Holdings – parent company of SSU – then announced it was rescinding a promise of €150m funding, putting even more pressure on SSU’s finances. SSU was not happy and said in a statement:

“After many years of mutually trusted collaboration and reliable financing between the Company and SIGNA Holding, SSU has relied on the binding and unconditional nature of the Equity Commitment Letter to continue to draw funds to meet its near-term obligations and for its going concern assessment of the Company and its subsidiaries. The Company considers the termination of the Equity Commitment Letter by SIGNA Holding unjustified. 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.”

Self administration means that the existing directors attempt to restructure the business rather than getting in actual (expensive) administrators. The process still involves legal oversight from a court. Like administration the process gives the company protection from creditors, who can’t take them to court to get their money. If self administration doesn’t work then they will have to call in real administrators and hand control of the company over to them. If you like bikes, you should join us in hoping that a success resolution is found.

Who is SSU and why should you care? Well, it’s the parent company of Wiggle CRC – the company behind the Chain Reaction and Wiggle websites that you’ve probably bought parts from at some point. Under the same umbrella are bike brands Nukeproof, Ragley, and Vitus, as well as distributor Hotlines. This means that all those brands – and their staff, associated race teams and sponsored athletes – are at risk. Given the success and profile of some of them – including Nukeproof’s recent expansion into the USA, even having a rider at Red Bull Rampage – this is real giant killing territory.

But it won’t end there. Wiggle CRC is a huge buyer of products, and if the rumours we’re hearing are true, there are a number of distributors with significant exposure to any Wiggle CRC insolvency. Everything you see on their websites that aren’t in-house brands – from tyres to tools to helmets – has been bought from those manufacturers or their distributors. If that stock hasn’t been paid for – and we’re hearing reports of up to £2m in stock sitting with Wiggle CRC for a single distributor – that’s going to cause cash flow problems across the industry. And as we’ve already seen this year, the bike industry is already struggling. That’s a lot of people out there wondering if their jobs will still be there in the weeks to come.

We’ve seen an excerpt of correspondence which suggests that at the start of the week SSU was asking distributors not to send extra stock or orders to them, and to keep goods in their warehouses. That will at least limit any further exposure to those brands.

However, there will be many more smaller amounts owed around the industry too. Consumers hearing the rumours this week have been debating whether to return unwanted goods, as well as wondering what warranty may remain if these big bike brands end up closing – or under new ownership.

There’s already a long Forum thread about the rumours. Catch up here. And here’s hoping for the most positive possible outcomes for all those concerned.

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Hannah Dobson

Managing Editor

I came to Singletrack having decided there must be more to life than meetings. I like all bikes, but especially unusual ones. More than bikes, I like what bikes do. I think that they link people and places; that cycling creates a connection between us and our environment; bikes create communities; deliver freedom; bring joy; and improve fitness. They're environmentally friendly and create friendly environments. I try to write about all these things in the hope that others might discover the joy of bikes too.

More posts from Hannah

Viewing 40 posts - 1 through 40 (of 56 total)
  • SIGNA Sports Financial Woes: Wiggle officially now in the hands of Administrators
  • PJay
    Free Member

    Doesn’t look good for company or staff (although the financial goings-on are a bit complex for me). Hope they pull through!

    As a consumer is it safe to continue buying from Wiggle/CRC?

    stwhannah
    Full Member

    As i understand it, if your order value is over £100 and you pay on a credit card, you’ll be able to get your money back from your credit card company if the goods aren’t delivered.

    But if you get your goods and want to return them, I think you may find yourself stuck with them. Don’t order the wrong standard rotors/BB etc!

    PJay
    Free Member

    I only have a debt card but tend to use PayPal which I think has protection.

    benpinnick
    Full Member

    As a consumer is it safe to continue buying from Wiggle/CRC?

    Possibly maybe. You really need to hear from the administrator before you dive in to be certain they will continue to trade as normal, although normal card rules as mentioned by Hannah would apply if you just can’t wait. When I realised they only had a few days left I dived in and bought some stuff that we get from Hotlines as well as some OE parts we use that they were selling for less than OE price on CRC. They’ve all arrived but from now, at least for now, I’m out.

    dirkpitt74
    Full Member

    Arse…….

    Was about to order my Daughter a Vitus XC bike – might hold off.

    As an aside I thought Nukeproof were a separate brand now and not part of Chiggle ?

    StuF
    Full Member

    Typical, just placed an order this afternoon, luckily for not much value. Now to play the delivery roulette, any guesses if it’ll turn up.

    benpinnick
    Full Member

    As an aside I thought Nukeproof were a separate brand now and not part of Chiggle

    A brand owned by the same group. Who actually ultimately owns within Signa it may determine its fate, but it’s caught in the same mess as all the other brands.

    convert
    Full Member

    Yes, you have to hope for a positive outcome for all. There will be a lot of ex bricks and mortar bike shop owners out there no longer in business because the wiggle/crc steamroller made the market impossible for them who might be struggling to be so charitable.

    I’m sure it’ll come out in the wash, but it does seems pretty spectacular to **** it up this badly. As a consumer who followed them, buying from them when they were Butler’s cycles, through their move to a bigger shop and a name change, then a warehouse, and then lots of warehouses and seemingly world domination it feels remarkable it’s come to this. I’m sure global conditions and consequential bad luck played a part. So did I expect a good dollop of greed and the push for never ending growth in the name of capitalism.

    nobbingsford
    Full Member

    Let’s just hope it’s not snapped up by Mike Ashley, as suggested on road.cc.  That would definitely put me off wanting anything to do with them!

    fatbikeandcoffee
    Free Member

    Organisation was good from roots, gets bigger, bigger, gets greedy, gets over ambitious, promises lots to owner / stockmarket and .. fails.

    matt_outandabout
    Full Member

    It’s the other suppliers that I really feel for.. This could bring more folk down with them – and limit a lot of opportunity to buy brands in the UK.

    dangeourbrain
    Free Member

    As i understand it, if your order value is over £100 and you pay on a credit card, you’ll be able to get your money back from your credit card company if the goods aren’t delivered.

    Section 75 applies to goods or services over £100 (up to 30k, but I don’t think you can spend that on a bike just yet) but it’s not totted up. So if you bought two £75 tyres they’re not covered. If you bought a £102 mech and a £90 shifter the mech is covered the shifter isn’t.

    That being said credit providers don’t tend to differentiate, but, if they’ve significant exposure they may (though the trouble is probably more than the money)

    Debit cards aren’t covered but visa and (I believe) mastercard choose to offer the equivalent of section 75 on their debit cards.

    PayPal credit will be covered by the cca. PayPal card payment, I’m really not sure, it’ll be in their t&c however I seem to recall when stuff went funny with fights for covid or volcanoes etc. PayPal was not a good way to have paid as essentially you’d paid pp for a service (to pay on your behalf) not the vendor.

    reeksy
    Full Member

    It’s the other suppliers that I really feel for.. This could bring more folk down with them – and limit a lot of opportunity to buy brands in the UK.

    A guy local to me runs a business importing Nukeproof and other Signa products from the UK – always matches CRC prices. Really handy being able to drop in and grab stuff. I guess he’ll be looking for alternative options now.

    Northwind
    Full Member

    I’m thinking I might declare myself to be a vulture capitalist and buy it all. I mean, I don’t have any money but then none of them use their own money anyway so that shouldn’t make a difference, right?

    dangeourbrain
    Free Member

    Northwind
    Full Member
    I’m thinking I might declare myself to be a vulture capitalist

    You’d probably fail the unfit and improper person test. Well maybe.

    nwgiles
    Full Member

    @stwhannah, a question, how does this affect Singletrack as they were recently announced as a sponsor?

    PJay
    Free Member

    I bought a Ragley Trig frame of them a while back and didn’t realise that Ragley was WiggleCrc owned.

    In the worst case scenario, if Wiggle & Ragley go down I guess I’ll be without a warranty.

    If the companies are bought out, will the warranty transfer and be honoured or is it just a case of wait and see?

    dangeourbrain
    Free Member

    If the companies are bought out, will the warranty transfer and be honoured or is it just a case of wait and see?

    Wait and see. It’ll depend what’s sold and to whom.

    benpinnick
    Full Member

    If the companies are bought out, will the warranty transfer and be honoured or is it just a case of wait and see?

    Thats down to the type of administration outcome. A sale of the business as a going concern would normally lead to warranty being honoured. It is very unlikely that would happen. A closure and asset sale (The deal that wipes all the debt and starts again) would mean your warranty is now just a good will gesture on the part of the person that picks up the pieces. This is the more likely outcome I would say.

    Kryton57
    Full Member

    Just got a 10% of anything email from CRC, wondering whether its worth getting Junior a cheap Vitus FS to play with, on the basis it’ll either arrive or I will get my money back via CC.

    DickBarton
    Full Member

    Do it…you buy what you consider a bargain, Chiggle get some money to help block the flood of money going out and things may settle a bit (although settle a bit is entirely unknown as to what that would actually mean!)…Junior gets a bike and you get hero points for buying a new bike!

    nickc
    Full Member

    Thanks @stwhannah, that’s a great article. Some I’ve seen recently are so full of jargon that unless you can read between the lines, are impossible for the lay person to decipher.

    tomhoward
    Full Member

    (up to 30k, but I don’t think you can spend that on a bike just yet)

    Challenge accepted.

    droplinked
    Full Member

    Hope this helps summarise buyer protections as the world of payment services and consumer rights is a complex minefield.

    Section 75 

    • Applies to all regulated credit agreements (credit cards, PayPal Credit*, fixed sum loan agreements, credit sale agreements)
    • Applies to goods and/or services over £100 (up to £30k)
    • Only applies to transactions made directly with the regulated credit agreement – e.g. using a credit card via PayPal would not be covered
    • No time limit on making claim
    • Statutory consumer right under the Consumer Credit Act

    Chargeback Schemes 

    • VISA, MasterCard and American Express have their own schemes, but are largely similar
    • Applies to any transaction made directly using a credit or debit card
    • Usually has a 120 day time limit for making a claim
    • Voluntary scheme provided by these companies

    PayPal Buyer Protection 

    • Applies to purchases made via a PayPal Account (PayPal pay-in-3, funds on the account, or via a bank account/card)
    • 60 day time limit for making a claim
    • Voluntary scheme provided by PayPal
    • Section 75 does not apply to purchases made via a PayPal Account*
    • Chargebacks do not usually apply, but you may be able to make a Chargeback claim if PayPal and the card issuer have a commercial agreement in place.

    *Its worth noting that PayPal Credit is a regulated credit agreement separate from your PayPal Account. Normal PayPal Account transactions and Pay in 3 are not part of it and are not covered by Section 75.

    dangeourbrain
    Free Member

    Challenge accepted.

    😂

    benpinnick
    Full Member

    Challenge accepted.

    * Calls Dangerholm *

    dirkpitt74
    Full Member

    Still wondering if I should order the Vitus XC bike for my Daughter – if I use my CC I should be covered…..

    mrchrist
    Full Member

    Let us know how you get on @dirkpitt74

    a11y
    Full Member

    I’m now seriously relieved the TWO Ragley Marley bikes I ordered for my kids were delivered yesterday. Delivery was a total balls-up by Wiggle but got there in the end.

    Annoyingly I order two tyres too which arrived last week but stupidly ordered the wrong ones. Doubt I’ll risk a return under more becomes known.

    5lab
    Full Member

    Just got a 10% of anything email from CRC

    is that a shareable code or unique to you?

    davidmoyesismydad
    Free Member

    @dirkpitt74 I have a brand new vitus nucleus size small 27.5 for sale.

    Bought for my daughter I the hope she would fall in love but just can’t get her off her horses

    I’ll pm you

    Sorry for the stealth add

    benpinnick
    Full Member

    Bought for my daughter I the hope she would fall in love but just can’t get her off her horses

    Have you considered a smaller horse?

    doomanic
    Full Member

    @5lab code is UPGRADE worked for me on a Black Friday item that I can’t really afford, don’t really need, but do really want… 

    chrismac
    Full Member

    Fingers crossed that a sensible solution can be found that doesn’t shaft creditors. It might also have a knock on effect for small brands who buy stuff from CRC as it’s cheaper than the importer will sell it to them as they dont want the volume to get the best deals

    brant
    Free Member

    Have you considered a smaller horse?

    Are you saying she’s on her high horse?

    stumason10
    Full Member

    I bought some shoes off wiggle 3 days ago. Delivered fine. The company is still trading. Worse thing that this does is causes people to stop buying and that’s that. 

    footflaps
    Full Member

    Even if / when Wiggle itself enters liquidation, the insolvency company will keep it trading whilst they look for a buyer.

    PJay
    Free Member

    Thanks for the payment protection information. I don’t have a credit card so tend to use PayPal, however I gather that their scheme might not be up to much.

    I do have a Visa debit card which I think might provide cover and be better to use. Where would I find out about this?

    DickBarton
    Full Member

    Either from Visa or the bank you have the card with…probably the bank as first port of call.

    tomhoward
    Full Member

    Challenge accepted.

    Right, It’s Saturday night and I’m bored. (RRPs used, and assumes all labour for assembly is free)

    Specialized Kenevo SL Frame, Motor & Battery plus extender – £7,200
    Custom paint job £1,500-£2,000 but really could go to the moon…
    Rulezman Dorado – £3,500ish
    EXT EStoria – £1,150 – OEM shock, say £500 so £650 total, plenty of scope for tuning £££
    SRAM XX Cassette, Mech, Chain & Shifter Pod – £1,400
    5DEV Ti Bike Cranks – £1,500
    KOM Hubs – £750
    Enve M70 Rims – £2,400
    Berd Spokes – ~£500
    Trickstuff Maxima Brakes £1,100
    Intend Areo Rotors – £200
    AXS Reverb – £800
    Tyres, those Tacky Chans were £75 each RRP, they’re as good as any for the purpose of this £150
    Crank Brothers eggbeater 11 Pedals – £400 (or £300 ish for a set of bling flats)
    Chris King Headset – £200
    Reserve Valves – £50
    5DEV Ti Stem – £350
    Dward Designs Ti Spider, Chainring, Seatclamp, Jockey Wheels, Topcap – £600ish
    Rev Grips – £100
    Specialized Power Saddle £350
    Thomson Ti Bars £400

    There’s a few other trinkets (ti bolts for example, but i CBA pricing all that up) but that’ll get you a working machine

    I’m afraid to say I’ve failed you STW, that little lot comes to a hair over £24k. I will say, however, that all of those bits (save for the paint job) are off the shelf items so if you throw in, say, a fully custom Ti FS frame by a legendary builder then you might get closer than I could.

    To clarify, this is NOT my next project!!

    (I’ve seen plenty of insta posts with bikes specced not too differently from the above though, these bikes are most certainly out there.)

    Hope those whinging on this weeks FGF don’t see this post, they’ll break free of orbit…

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