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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Author Profile Picture
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 16 posts - 41 through 56 (of 56 total)
  • SIGNA Sports Financial Woes: Wiggle officially now in the hands of Administrators
  • doomanic
    Full Member

    You cheaped out on the tyres; DH Shorty’s are £85 each. I’m not sure if you can use a CK headset in the SL frame. Doesn’t look like 5DEV do Ti cranks for the SL motor either.

    tomhoward
    Full Member

    This not an SL?

    https://www.instagram.com/p/CskmF41ONj7/?igshid=MzRlODBiNWFlZA==

    EEWings ebike cranks then? Same price.

    doomanic
    Full Member

    No, the SL is M30, the Levo and Kenevo FF is ISIS.

    RickDraper
    Free Member

    Tom, swap the hubs for Chris King Ceramic MTB hubs £1350 for the pair.

    tomhoward
    Full Member

    I did wonder if CK had gone north of a Grand a pair, but forgot to look. Fair enough, 24.5k.

    Might start another thread, avoid derailing this.

    How Much?! Just for fun!

    NewRetroTom
    Full Member

    Any updates? Has the latest STW invoice to CRC been settled? Forum is still showing as sponsored.

    Parent company is insolvent – any buyers interested in Wiggle CRC at a knock-down price?

    dissonance
    Full Member

    Parent company is insolvent – any buyers interested in Wiggle CRC at a knock-down price?

    I did get an email from them today “wiggle wants your help”. Sadly it was just an attempt to get a review rather than offering me the company.

    mc
    Free Member

    Any updates? Has the latest STW invoice to CRC been settled? Forum is still showing as sponsored.

    I’d imagine all contracted sponsorship will remain in place until any contracts are officially broken/terminated.

    stwhannah
    Full Member

    @NewRetroTom Yes, it’s all fine with us – all our invoices are paid and up to date, so the contracted sponsorship remains in place.

    davosaurusrex
    Full Member

    Well I cracked and ordered on a Ragley Marley 1.0 complete bike for the boy last night. Realised I couldn’t build a bike of that quality for the money even with bargain hunting. No word yet but ordered using a CC so it’ll be reet……

    masterdabber
    Free Member

    I understand, from another forum, that the delivery tracking for the Vitus E-Mythique LT Enduro EMTB is now showing 25th December!   Looking iffy.

    Dickyboy
    Full Member

    Thanks for the update H, bought a few bits & bobs with no issues last week

    fooman
    Full Member

    Wiggle and CRC have also upped their QuidCo cashback to 7.5%, not that I’ve had any success claiming cashback since the web update so can’t be relied on… but this is on top of any other discount if it does work.

    TheGingerOne
    Full Member

    Fingers crossed for the hardworking, loyal staff who are the backbone of the company.

    jwreeder1
    Full Member

    God darn it….the one time I win anything on the FiveTen competition a few weeks ago and the company goes bust!!

    In all seriousness, I really hope all the staff of CRC/ Wiggle get looked after in these challenging times.

    J-R
    Full Member

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

    Yes, if it’s over £100 and it does not get delivered / arrives damaged / not as advertised.   But not for simply wanting to return it because you don’t want it.

Viewing 16 posts - 41 through 56 (of 56 total)

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