WiggleCRC’s future is on the line after parent company Signa Holding, the co-owner of Selfridges, withdrew a financial lifeline.
The online bicycle retail group’s parent company Signa terminated a €150m (£130m) funding commitment to its struggling sports division last Monday, according to The Sunday Times.
Signa Sports United (SSU), which bought WiggleCRC (comprising Wiggle and Chain Reaction Cycles) in 2021, said the move to pull funding was “unjustified” and cast doubt on its ability to continue to operate as a going concern.
It placed online tennis equipment retailer Tennis-Point into insolvency and warned that other subsidiaries would follow.
WiggleCRC has reportedly declined to comment.
In a statement last week, SSU said that “after many years of mutually trusted collaboration and reliable financing,” it had relied on an equity commitment letter dated June 26, 2023, “to continue to draw funds to meet its near-term obligations and for its going concern assessment of the company and its subsidiaries”.
Portsmouth-based WiggleCRC was bought for £180m by private equity firm Bridgepoint in 2011 when demand for bikes was soaring.
However, demand for bikes has softened post-pandemic and supply chain disruption has impacted the WiggleCRC business, with SSU settling £313m of debt accrued under Bridgepoint and extending a €21.7m (£18.9m) loan.
Sales at WiggleCRC, which employs about 800 people, declined by 30% to £252.5m last year and it made a loss of £111.2m.
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