Wiggle has appointed administrators to handle the affairs, business and property of the cycling retailer on Tuesday 24 October. The business is now set to be put up for sale.
A notice was posted in the FAQ section of user’s Wiggle accounts, first seen by BikeRadar yesterday, notifying customers of the appointment.
Today, the notice that Wiggle Limited has appointed the administrators was posted in The London Gazette, a journal in which certain statutory notices, such as administration and insolvency, must be posted.
Wiggle has appointed Anthony John Wright and Alastair Rex Massey from FRP Advisory as administrators.
The appointment of administrators follows the news that Wiggle and Chain Reaction faced insolvency and were seeking self-administration.
This came after a period of financial turmoil for Wiggle’s owner Signa Sports United (SSU) and the termination of an unconditional €150 million Equity Commitment by Signa Holdings, an affiliate company of SSU.
SSU deemed the termination “unjustified”.
The notice on Wiggle’s website reads: “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.”
Up for sale
A statement issued by the Joint Administrators says Wiggle CRC is set to be put up for sale.
The statement says Wiggle CRC and its brands will “remain fully operational and will continue to trade”.
Wright and Massey were also appointed as administrators to Mapil Midco 1 Limited, another company within the Wiggle group. Chain Reaction Cycles Retail Limited and Hotlines Europe Limited are expected to be placed into administration imminently.
The business has headquarters in Portsmouth, UK, and operates a 320,000 sq ft warehouse facility in Bilston, Wolverhampton.
It employs around 450 staff, all of whom have been retained by the Joint Administrators at this stage, according to the statement.
Wright says: “WiggleCRC is one of Europe’s best-known sports retailers and has built a committed customer following in the cycling community.
“The administration provides a crucial period of protection for WiggleCRC as we prepare to market the business for sale.
“The group has a quality stable of brands and a leading market position, so we expect there to be interest and encourage potential buyers to come forward.”
Private equity firm Bridgepoint paid £180 million for Wiggle in 2011 and the company merged with Chain Reaction Cycles in 2016.
SSU bought Wiggle in 2021, but the sports division of Signa, a conglomerate built by Austrian developer René Benko, has struggled financially, delisting from the New York Stock Exchange in October.
BikeRadar has contacted Wiggle for further information.
If you've been affected by the Wiggle administration, we'd love to hear from you at news@bikeradar.com
