Wiggle CRC

Wiggle Chain Reaction Deal Falls Through: Mike Ashley Buys Name and IP

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Last time we reported on the Wiggle CRC administration it looked like the company could be bought as a going concern, with a number of buyers apparently interested. Now, sources say that’s all off the cards, and today we understand there has been a mass laying off of staff across the company. We’re hearing that the company will live on in name only, with the brands and (Intellectual Property) IP being bought by Mike Ashley although this has yet to be confirmed.

We have also heard today that Wiggle has made the majority of its 450 staff redundant.

One industry insider said, “So Wiggle/CRC/Hotlines/Nukeproof etc are all gone in the last hour. Apparently Mike Ashley has bought the IP to it all.

One source, who no longer has a job at CRC said: ‘The day the [Wiggle/CRC] “merger” was announced we were doomed. They dismantled everything that was good about CRC, piece by piece.
Nobody expected Wiggle to go under, however, that’s what happens when corporate greed takes over.’

This is a breaking story and we will update as we get more information.

If all this proves to be true, what’s next?

Mike Ashley owns Frasers Group, which already owns Evans Cycles. This group has something of a reputation for buying up companies in administration. We had thought that buying the whole WiggleCRC business could increase their online capacity and improve direct purchasing power from factories. However, we’re hearing that Mike Ashley has just bought the IP and names. At this stage we’re not sure of the extent of the purchase, but within the WiggleCRC business the bike brands Nukeproof, Vitus and Ragley are registered. Whether we’ll see the actual IP for bikes coming over to the Fraser Group and Gigas or Sentiers popping up in Evans remains to be seen. It might just be bike shaped objects bearing the brand names – as we’ve seen with Muddy Fox, for example.

As well as bike brands, WiggleCRC has many in house brands, some of which like DHB have gained an established reputation. There’s also running gear, paddlesport and watersports stuff – all of which might sit well in a Sports Direct store, another part of the Frasers Group.

In recent days there have been some signs that things were not going to plan, with more Nukeproof athletes announcing their departure from the brand. Then today, Wednesday 21st February, many staff were let go – we’re not clear if it’s all staff, or almost all. We’ve reached out to as many contacts as we can – hardly a pleasant task when you know they’re likely to be reeling from redundancy news – so we’ll update you as we hear more. We think an official press release can’t be far away, now that staff have been let go.

https://singletrackworld.com/wp-content/uploads/2024/01/wigglecrc-administrators-report-what-does-the-future-hold/

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Home Forums Wiggle Chain Reaction Deal Falls Through: Mike Ashley Buys Name and IP

Viewing 40 posts - 1 through 40 (of 267 total)
  • Wiggle Chain Reaction Deal Falls Through: Mike Ashley Buys Name and IP
  • 1
    redthunder
    Free Member

    Back to Treadz.

    grahamt1980
    Full Member

    Bigger firesale coming then

    7
    brakestoomuch
    Full Member

    That’s terrible news. You have to feel for all the staff they let go.

    4
    sv
    Free Member

    Sad times, never the same since the merger. Wiggle/Signa ruined it all.

    3
    jeffl
    Full Member

    That’s shit for everyone. Staff being made redundant, less choice for consumers and more chance of Mike Ashely making money.

    Only positive I can see is that LBSs may be able to make some money on parts rather than everyone buying at Wiggle/CRC.

    Oh also the smaller guys, SJS and Merlin Cycles spring to mind, get an opportunity to fill the gap

    nuke
    Full Member

    Shit news. Employees i feel most sorry for but had hoped they could keep the house brands going as i genuinely think they had some good ones… we’ll see but sounds like it really is end of the line

    2
    endoverend
    Full Member

    Well that’s another company that won’t ever receive another penny of my money again then…. or anyone else’s by the sound of it.

    seriousrikk
    Full Member

    Genuinely sorry for the staff.

    I wonder what point the money people spend there starts going into Ashley’s pocket. I’d like to know, so I know when to stop buying the real cheap shit.

    2
    whatyadoinsucka
    Free Member
    1
    Rubber_Buccaneer
    Full Member

    I guess the forum will be returning to hamster power

    Image 21-02-2024 at 18.10

    3
    neilupnorth
    Full Member

    The absolute scumbag, buy the IP and bin the rest. Words fail me as to how this has been able to happen, complete and utter greed from all of them

    desperatebicycle
    Full Member

    Ah man. Down the same shitdrain as Evans. Luckily, during or the crappy-website-change-times etc, plenty of alternatives have been found online. My last 2 purchases have been from Woollyhatshop’s ebay listings and Merlin.

    1
    dropoff
    Full Member

    Terrible news for the employees. These sort of buy outs shouldn’t be allowed to happen.

    3
    white101
    Full Member

    He is an Olympic level disaster capitalist

    12
    oldschool
    Full Member

    won’t ever receive another penny of my money again then…. or anyone else’s by the sound of it.

    The whole Mike Ashley hate thing is weird, I have read articles written about him and how he is viewed as the bogeyman of retail. He’s a nasty piece of work, he’s too rich, won’t spend money with him….

    But there’s also lots of people saying more needs to be done to save high streets up and down the UK.

    He’s saved more high street shops than all* the people on this forum I suspect, we might not like his methods or practices but clearly the methods of the previous owners weren’t working.
    Without his input I suspect the high street in most Towns would be worse.

    I’m no ‘fan’ of his, I’m really not too fussed, I buy based on various factors depending on what I’m buying and my personal knowledge of a product vs ease/price/availability. Sometimes that’s local, sometimes Amazon, sometimes nasty-multi-corp or a specialist many miles away.

    I’ll won’t be boycotting chiggle, HofF or Evans, but nor will they get all my cash.

    *awaits Mary Portas to be a poster😉

    2
    monkeyboyjc
    Full Member

    Lbs is the way forward – I’ll be boycotting any products or bramds Mike Ashley tries to pedal….

    5
    Harry_the_Spider
    Full Member

    Terrible for those who have lost their jobs.

    I’m no great fan of Mike Ashley either. But he didn’t break CRC/Wiggle.

    1
    ads678
    Full Member

    Rubbish for all the employees, but I’ll wait and see what happens before completely boycotting. They might have some more bargains….

    I paid about £60 for 2 pairs of five tens, surely he didn’t make any money on them?!?

    dropoff
    Full Member

    Wonder if I’ll get my bike back ??

    grimep
    Free Member

    German cycling giant purchases mail order specialist Merlin Cycles (cyclingindustry.news)

    Oooh, does that mean we can get rosebikes and bikeparts.de prices again?

    Or will they just continue milking us for every last penny?

    dirkpitt74
    Full Member

    That’s truly crap 😔

    Feel so sorry for all the staff at CRC and the brands – especially Nukeproof as the guys who work there are all enthusiastic riders and great to chat with.

    Perhaps Mr Ashley will suprise us with this one and let the brands keep going..

     

    I’d hate to see a Ragley or Nukeproof BSO in the shops……

    vinnyeh
    Full Member

    What a sad and ignominious end for Chain Reaction, after all the stuff we’ve been through together over the years- my first purchase was an emergency wheel late on a Saturday from the Ballyclare shop back in the days when you rode the same bike in DH on Saturday and XC on Sunday.

    Less attached to Wiggle, but will also be missed.

    I thought it was a good sign that after the panic selloff of Hope brakes cheaply, that they’d gone out and restocked them, selling back at the normal price- surely they must have had to pay up front to restock? How did that work when they were in administration?

    3
    finbar
    Free Member

    He’s saved more high street shops than all* the people on this forum I suspect,

    It’s impossible to say for certain, but it’s pretty likely high streets would need a bit less saving if it weren’t for the aggressive business practices of (especially) Sports Direct.

    14
    thepodge
    Free Member

    The irony of this thread and the cheap 5.10s thread running at the same time is brilliant.

    5
    cookeaa
    Full Member

    The absolute scumbag, buy the IP and bin the rest. Words fail me as to how this has been able to happen, complete and utter greed from all of them

    I’m not a Mike Ashley fan, but this is kind of what happens when businesses go tits up like this. The “absolute scumbags” in all of this are the likes of signa who went and crashed Chiggle.

    Ashley is just doing what he’s known for, picking over the corpse of a dead retail business and buying up the bits that are worth something to him, which would mostly appear to be the websites and trade/brand IP.

    7
    onewheelgood
    Full Member

    The whole Mike Ashley hate thing is weird

    My objection to Ashley is the way he reduces once great brands to a label to slap on some cheap Chinese tat. Of course, if people insist on buying CCT they can, but it doesn’t have to say Karrimor, Muddy Fox, or Nukeproof on it. Better to leave those names to die a natural death than keep them around as Ashley’s zombies.

    7
    the-muffin-man
    Full Member

    Mike Ashley doesn’t run the companies into the ground that he buys. The fault 100% lies with the current owners of Wiggle/CRC.

    6
    monkeyboyjc
    Full Member

    I’m no great fan of Mike Ashley either. But he didn’t break CRC/Wiggle.

    True, but he hasn’t saved the staff from being made redundant either – he’s waited until the company was on its knees and bought the branding only.

    He hasn’t bought any of the wealth of experience the staff have, saved jobs, lively hoods etc. Done nothing that affects hundreds of people. The man is consistently a retail vulture, picking at the bones of businesses and then regurgitating them back up as cheap imitations.

    The irony of this thread and the cheap 5.10s thread running at the same time is brilliant.

    100% this. 100’s of pairs that have popped up on FB marketplace now at over inflated prices which I find depressing.

    1
    the-muffin-man
    Full Member

    True, but he hasn’t saved the staff from being made redundant either – he’s waited until the company was on its knees and bought the branding only.

    That was the job of the previous owners – they screwed up. If there was a company left to save the Administrators could have got more money for it.

    5
    ogden
    Free Member

    The irony of this thread and the cheap 5.10s thread running at the same time is brilliant.

    Faux outrage only lasts until it hits the right price. Nobody was bashing him when he was selling dirt cheap specialized enduros a few months back either.

    If it gets to the point where he is coming in for a business it was long ruined before he got there.

    1
    ampthill
    Full Member

    A company went bust

    To pay off creditors they sold the brand names

    I’d rather it wasn’t Mike Ashley that bought them. I’d rather the business had found a buyer for the infrastructure and employees. But the recievers job is to obtain as much as they can for the assets to pay off creditors.

    goldfish24
    Full Member

    It’s such a shame. It’s bad enough that the operations staff will be out of a job looking for another employer to use their skills in warehousing/logisitics/CS. But their skills will transfer well to other jobs if they can find them, though they may miss their teams. I feel more for the (probably very small) teams of product managers, engineers and buyers that were making a really good job of brands like nukeproof and vitus. Those teams are gone.

    monkeyboyjc
    Full Member

    That was the job of the previous owners

    From what I understand of the situation the owners had 150mil of investment removed by investors. If I took a large proportion of investment out of my business it would fold too 🤷‍♂️.

    If there was a company left to save the Administrators could have got more money for it.

    crc’s been the Benchmark shop for telesales and internet cycling sales for as long as I’ve been riding. I wonder how many other big cycling brands will go pop this year, crc/wiggle cirtainly won’t be the last. The issues are industry wide rather than single company centric.

    The issues also seem, at least to me, to go far wider than the cycling industry, all parts of post pandemic retail is in complete turmoil at the moment.

    2
    molgrips
    Free Member

    Hang on, a year ago Wiggle/CRC were the enemy..?

    14
    curto80
    Free Member

    This was posted on Facebook half an hour ago:

    “I have been running the bike workshop for WiggleCRC for the last 2.5/3 years …. sadly its came to an end for us all , if anyone needs or knows of anyone who needs some experienced bike mechanics I can put in touch with 20+ of some of the best …MTB experts  , Roadie fanatics and all rounders and even an old rockstar who’s built 98% of the ebikes that’s came through ,who also does Rod Stewart tributes to keep you entertained. Also a badass MHE driver who can drive anything and is more of a machine than the trucks he operates…..They’ve all achieved some great things and accomplished every hurdle along the way and this sad news is nothing to do with these legends they’ve smashed everything thrown at them.”

    flyingpotatoes
    Full Member

    Say hello to £4.99 delivery charges 😐

    1
    monkeyboyjc
    Full Member

    year ago Wiggle/CRC were the enemy..?

    Only at war with the lbs never the Consumer?

    Like many, I bought my first MTB/ATB at butler cycles which became wiggle and upgraded bits on it through various phone calls to the original crc bike shop

    I suppose it’s much the same that supermarkets are the enemy of the corner shop. Tesco are currently actively and directly trying to kill off the small local shop with changes at Booker.

    5
    convert
    Full Member

    IP purchase – I really hate this kind of thing. Not just selling Chiggle to Ashley, but the whole concept right from the sole trader to the SME to this sort of deal. You are basically selling the brand recognition and the reputation (and maybe the client list) to a totally different person or organisation who have done nothing to deserve it. It’s tantamount to fraud in my books. You are basically conning the unaware consumer that the new owners/operators deserve to be trusted the same as the old ones. It’s a bag of shite.

    Lbs is the way forward –

    It really isn’t. I’ve been cycling long enough to have been buying cycling tat before the internet. Unless you are very very lucky the LBS experience is bobbins. Always was – we just didn’t have a choice back in the day. Online shopping has led to choice, availability and price improvements in pretty much every type of retail sector and no reason for cycling to be any different. Advice and spannering are the LBS USP and for me…..my knowledge (with a few mins of google to add specifics to a broader understanding) and practical skills are plenty good enough for it not to be a benefit. They are just not needed for me.

    edit – lovely message from that Wiggle workshop manager.

    endoverend
    Full Member

    You know that banner at the top of the home page that says Singletrack Forum powered by Chainreaction…

    2
    monkeyboyjc
    Full Member

    They are just not needed for me.

    You can’t have you cake and eat it…. Saying IP buy outs are bad because

    You are basically conning the unaware consumer that the new owners/operators deserve to be trusted the same as the old ones. It’s a bag of shite.

    But local shops are not required just because your knowledge is larger than the average consumer.

    There’s a place for both. My LBS is excellent and also does significant trade on the internet with regular great deals. I often buy from them online and pick up in store, within hours.

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