Wiggle in administration

[bikepacker]

Just had this message via bikebiz: https://bikebiz.com/wiggle-crc-to-enter-self-administration-according-to-reports

[Hot Flatus]

It is because its parent company has decided not to fund it anymore.

[Kim]

Hang on - Wiggle (and CRC, who appear to be the same thing now?) was chugging along at a loss the whole time?  How does that work?  They're not even an internet company!

[Sergeant Pluck]

"In September, the company recorded pre-tax losses of £97,041,000"

How can a company the size of Wiggle lose that much in a year without money having been extracted in some way?

[bikepacker]

"In September, the company recorded pre-tax losses of £97,041,000"

How can a company the size of Wiggle lose that much in a year without money having been extracted in some way?

I think that figure refers to Signa Sports United as a group of companies.

[L CC]

Alongside Wiggle CRC, the Signa Sports United group includes Tennis-Point, Tennis Pro, Tennis Express, Fahrrad.de, Bikester, Probikeshop, Campz, Addnature and Outfitter. The company also owns the mountain bike brand Nukeproof and the road bike and gravel bike brand Vitus.

[alfapete]

It is because its parent company has decided not to fund it anymore.

A bit like Worcester Warriors Women whose funding had been promised for the next ten years in January by Cube International.
They pulled the plug on Tuesday. They say they'll pay the players and staff for the next couple of weeks (statement read Sept and Oct) and they'll refund our season tickets, but I won't hold my breath.

[Woofage]

Hang on - Wiggle (and CRC, who appear to be the same thing now?) was chugging along at a loss the whole time?  How does that work?

Greed.

Big retail appears to be a big con. Companies borrow millions, generate no profit (but a select few get rich along the way) and then the debt gets bought up as part of another type of con.

[Polar Bear]

It's similar to the privatised water scam.  Borrow loads of money, give it to shareholders and executives and then put up the bills to pay for the inevitable works required.  As it is, in retail it's easier to simply let the administrators come in, restructure the debt or even go under and write off the debt and let others lose out whilst those at the top have gotten filthy rich and trot along to their next scam.

At least, that's my cynical socialist opinion ...

[Kim]

You start to wonder if it's even possible to make money by making goods and providing services any more.  Everything seems to be geared up for trading debt and owning houses.

[Jaded]

cf Wilkos.

Healthy company bought up and stripped.

[sg37409]

I hope the DHB clothing line continues somehow.   

[FifeingEejit]

It is because its parent company has decided not to fund it anymore.

A bit like Worcester Warriors Women whose funding had been promised for the next ten years in January by Cube International.
They pulled the plug on Tuesday. They say they'll pay the players and staff for the next couple of weeks (statement read Sept and Oct) and they'll refund our season tickets, but I won't hold my breath.

A quick "who are they" Google reveals that it's them wot the Manx Government are a tad pissed off with.

And other than their obvious financial problems and various screen scrapers of companies house, that's all I can find they did.

Can't imagine there would be enough profit in selling merch for the manx government, even if it is the TT.

[toontra]

I hope the DHB clothing line continues somehow.

I'm wondering if I should stock up on their merino base layers (my favourites).  How soon do you reckon stuff will become unavailable?

[rogerzilla]

cf Wilkos.

Healthy company bought up and stripped.

It was family-owned from beginning to end, although they took some funding from Hilco (the financiers with the reverse Midas touch) when they were on the skids.

[Jaded]

cf Wilkos.

Healthy company bought up and stripped.

It was family-owned from beginning to end, although they took some funding from Hilco (the financiers with the reverse Midas touch) when they were on the skids.

Only £77m of dividends, nothing serious.

[Cudzoziemiec]

You start to wonder if it's even possible to make money by making goods and providing services any more.  Everything seems to be geared up for trading debt and owning houses.

It's as if capitalism as we have hitherto known it no longer applies.

[Woofage]

You start to wonder if it's even possible to make money by making goods and providing services any more.  Everything seems to be geared up for trading debt and owning houses.

It's as if capitalism as we have hitherto known it no longer applies.

Certainly not when it's a race to the bottom.

[ElyDave]

So it's SJS, Spa Cycles and Tredz left to fill the gap, and Sigma Sports of course

[robgul]

So it's SJS, Spa Cycles and Tredz left to fill the gap, and Sigma Sports of course

Tweeks and Merlin seem to be in the frame too?

[quixoticgeek]

Has chain reaction gone bust as part of this? I just got an email about their black Friday deals...

Wiggle are still pushing and sales too...

J

[quixoticgeek]

So it's SJS, Spa Cycles and Tredz left to fill the gap, and Sigma Sports of course

Tweeks and Merlin seem to be in the frame too?

Bike24.de
Discountbike.de
Mantel.nl
Bike-components.de
Futurumshop.nl

Plenty of places still going...

J

[toontra]

Any expectation of when they may stop trading (based on prior similarities)?

[quixoticgeek]

Just got the wiggle black Friday email too...

J

[robgul]

So it's SJS, Spa Cycles and Tredz left to fill the gap, and Sigma Sports of course

Tweeks and Merlin seem to be in the frame too?

Bike24.de
Discountbike.de
Mantel.nl
Bike-components.de
Futurumshop.nl

Plenty of places still going...

J

Wiggle/CRC bought Bike24 in October 2017 and sold it back to the original owner in September 2019.   The whole saga with Signa (NOT Sigma) seems to be a tangled web