Mass redundances have taken place at online retail giants Wiggle and Chain Reaction, with “almost everyone... within the organization” losing their jobs, according to industry sources.
LinkedIn posts from a number of employees within the group have confirmed the news, with one stating: "Unfortunately, my time is up, along with everyone else within the organisation". Another has said "the administrators have closed the shutters".
An industry source from outside of Wiggle and Chain Reaction has told BikeRadar that the redundancies are believed to coincide with a sale of the business, but this has not been confirmed.
Beyond today's news, the ultimate future of Wiggle, Chain Reaction and the house brands within the group – including bike brands Vitus and Nukeproof – remains unknown.
Wiggle and Chain Reaction entered administration in October and were then put up for sale.
The latest redundancies follow an initial round of 105 redundancies late last year, with job losses at Wiggle, Chain Reaction and distributor Hotlines.
Retail turmoil
Wiggle’s difficulties began in October 2023 when its owner Signa Sports United faced severe liquidity and profitability issues.
This was followed by Signa Holdings, an affiliate of SSU, terminating an unconditional €150 million equity commitment to the company.
At the time, SSU said: “Although some economic indicators across core markets have continued to improve slightly, the demand for the Company’s products remains significantly below 2022 and pre-pandemic levels.”
As a result, SSU said it would evaluate its business model and wind down non-performing assets.
Wiggle CRC appeared to fall into this category, with an email seen by BikeRadar at the time suggesting the company would file for insolvency.
A week later, it was announced Wiggle had appointed administrators, first posted in the FAQ section of its website before an official announcement in The London Gazette, a journal in which certain statutory notices, such as administration and insolvency, must be published.
After another seven days, Wiggle cut 105 jobs, with the administrators stating this was to allow the business to keep operating.
Soon after, the administrators announced Wiggle would be up for sale, and it was later reported that 24 parties has expressed interest, with Sky News reporting Mike Ashley’s Frasers Group was one of the potential buyers.
Industry volatility
News of mass redundancies at Wiggle, and unconfirmed reports of the brands being sold off, follow a volatile few years for the sports e-commerce group.
Wiggle’s annual report from 2022 says the business benefited from the pandemic lockdowns, particularly through 2020 and 2021.
However, sales were down 32 per cent in the year to September 2022, with Wiggle reporting a pre-tax loss of £97m.
While sales were still up 7 per cent compared to the year to September 2019, Wiggle began to run into further difficulties.
International sales declined by 26 per cent in the same period, with the company citing Brexit as a contributing factor, thanks to higher duty and fulfilment costs necessitating higher pricing.
“The effects of the current economic uncertainty have been felt throughout the retail industry in recent months and the future impact of these uncertainties remains difficult to predict,” wrote Wiggle’s chief finance officer Adrian Bruce, who left the company in May 2023.
A spokesperson for the administrators handling the sale process said they would not be commenting at this time. Wiggle and Chain Reaction have been approached for comment.
