The extent of money owed by WiggleCRC to brands across the bike industry has been laid bare in the recently published administrator’s report outlining the state of play since the online cycling retailer entered administration in October.

Two weeks ago, we reported that administrators are “optimistic” about the prospect of selling the business, with Wiggle making a “considerable trading profit” during the administration period involving the Black Friday sales and run up to Christmas.

However, the administrator’s report, published on Companies House, also highlights a significant list of individuals and brands from across the cycling industry and beyond who were owed money at the time Wiggle entered administration, although it is also worth mentioning that in speaking to sources road.cc learnt that some creditors mentioned have since been paid in full.

Wiggle and Chain Reaction logos
Wiggle and Chain Reaction logos (Image Credit: Farrelly Atkinson)

Haribo is listed as being owed £20,275 by WiggleCRC, but did not respond to a request for comment, while major UK distributors Madison and Extra UK LTD are listed as due £1,095,272 and £925,614 respectively. Also at the top end of the scale are Taiwan-based manufacturer Ideal Bike Corporation, listed as being owed £1,291,050, Garmin Europe Limited (£853,762), Saddleback (£815,082), Science in Sport (£662,558), POC Sweden (£507,968), Selle Italia (£400,922), Endura (£387,329), and Vittoria (£208,920).

From speaking to figures within the bike industry road.cc understands some debts have been paid in full since Wiggle entered administration, while other brands may in fact be owed less than the stated figure due to contractual factors.

British-based brands such as Raleigh (£235,781) and Muc-Off (£99,647) are also listed as being owed the aforementioned debts.

An industry source also suggested the scale of Wiggle’s business means the company may “not be necessarily that far behind, it could be a monthly turnover that they have not paid once, and that is half a million pounds to some of these companies”.

Speaking from their role at a company who had been paid in full, they pointed out the administrator’s statement also only notes the debts owed when Wiggle entered administration in October, not as of mid-December when the report was published – for example, road.cc’s own parent company Farrelly Atkinson Ltd is listed as being owed £720, that the company understands has now been paid. However, the industry source says they are aware of other brands who have not yet been paid. 

The administrator’s proposal notes that it was agreed following consultation with management “that the best course of action was to continue to trade the business while a buyer was sought.”

Wiggle entered administration in the weeks of heavy retail activity leading up to the Black Friday sales and Christmas shopping period, something which is reflected in the report, administrators saying trading had been “very positive during the administration process” with a “considerable trading profit achieved”.

> Is it safe to spend with troubled retail giant Wiggle Chain Reaction?

The administrators added that they had “taken the opportunity to augment stock held within the business with opportunistic purchases to generate additional website traffic and profits”.

Heavy discounts have continued beyond Black Friday, Wiggle’s website currently promoting an ‘Epic Winter Sale’ with up to 70 per cent savings on offer.

Wiggle Epic Winter Sale
Wiggle Epic Winter Sale (Image Credit: Farrelly Atkinson)

Wiggle Chain Reaction recorded a pre-tax loss of over £97 million in 2022, compared to £14.5 million for the previous year, as the company’s former chief finance officer blamed the aftereffects of Covid, Brexit, and ongoing economic uncertainty for the significant drop.

Alarm bells began to ring in the autumn of last year, Wiggle Chain Reaction’s parent company Signa Sports United (SSU) reporting “severe liquidity and profitability challenges” and announcing the delisting of its shares. As a result, SSU’s €150 million funding commitment from its own parent company, Signa Holding, was withdrawn and in turn painted an increasingly bleak picture for Wiggle and the group’s other cycling business, which include Bikester, Probikeshop, and Farrhad.de.

By mid-October, word was spreading of Wiggle’s reported impending entry into administration, news confirmed shortly afterwards.

> What the hell is going on in the bike industry? Wiggle Chain Reaction turmoil discussed on the road.cc Podcast

Wiggle Chain Reaction was put up for sale as its parent company filed for insolvency, the month of November beginning with more bad news as 105 redundancies were announced.

Administrators reported “considerable interest” for the business from potential buyers, Mike Ashley’s Frasers Group which owns Evans Cycles rumoured to be one such party, and in last month’s report the administrators said they remained “optimistic” over the possibility of a sale.