Mon, 30 Oct 2023 | ADMINISTRATION
Administrators have been appointed at online cycling retailer Wiggle and will now seek to sell the firm, following the financial struggles faced by its parent company Signa Sports United (SSU). Anthony John Wright and Alastair Rex Massey of FRP Advisory have been appointed as joint administrators by Wiggle.
SSU, which was previously listed on the New York Stock Exchange (NYSE), has faced significant financial challenges recently. The group had announced major restructuring plans earlier this month and delisted from the NYSE, but then saw affiliate company Signa Holdings rescind an unconditional €150 million Equity Commitment.
The withdrawal of this funding has had a significant impact on SSU and its subsidiaries, with two of its brands – Tennis-Point GmbH and Internetstores – having already declared insolvency. Wiggle CRC, the company behind Wiggle and Chain Reaction Cycles, as well as in-house brands, Ragley, Nukeproof and Vitus and distribution firm Hotlines, is the latest to be impacted.
Wiggle CRC had already been under significant financial pressure prior to the funding withdrawal, recording a pre-tax loss of over £97 million in the year to September 30 2022, up from a loss of £14.5 million a year earlier.
Wright and Massey have been appointed as joint administrators to Wiggle and another firm in the group, Mapol Midco 1 Limited. Chain Reaction Cycles and Hotlines are expected to enter administration imminently.
Wiggle, which is headquartered in Portsmouth, has a 320,000 sq ft warehouse facility in Wolverhampton and has a workforce of around 450 staff. No jobs have been lost at this stage and Wiggle CRC and its brands will continue trading and remain fully operational while buyers are sought.
Joint administrator Anthony Jon Wright commented: “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.”
Find out about the factors currently shaping online business M&A trends
Famous destination furniture & flooring retailer, renowned for beds, sofas and chairs from quality British manufacturers. Occupying highly visible high street trading position within the popular East Devon town of Honiton, being easily accessible, be...
LEASEHOLD
Established well known home, hardware, DIY & garden store plus school uniform supplier. Occupying prime Ivybridge town centre trading position, fronting the main shopping thoroughfare, benefiting from restricted stay car parking immediately in front,...
LEASEHOLD
Major landmark store, 100+ years established, occupying valuable trading position within this mid Devon town, centrally positioned on Crediton high street, opposite Costa Coffee, close Tesco Express, with free restricted stay car parking immediately...
FREEHOLD
26
|
Apr
|
Major double glazing firm Everest enters administration | ADMINISTRATION
Everest, one of the largest providers of double-glazing in t...
26
|
Apr
|
Kent-based scientific consultancy sold to US firm | BUSINESS SALE
A4P Consulting Limited, a scientific consultancy company hea...
25
|
Apr
|
Ambulance services provider acquired in pre-pack deal | BUSINESS SALE
Elite Emergency Medical Services Ltd (Elite EMS), an ambulan...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.