Frasers Group interested in buying Wiggle CRC, according to report

Frasers Group is interested in purchasing Wiggle CRC, according to a report published on Sky News.

The brand, which is owned by Mike Ashley, already has a cycling retailer under its umbrella, having acquired Evans Cycles in 2018 after the company also entered administration. If Wiggle CRC was incorporated into the umbrella, it would join other major brands including Sports Direct, Jack Wills and Slazenger.

• Read more: Wiggle Chain Reaction Cycles goes into administration

Rumours that Wiggle CRC has been struggling financially first emerged last week when reports suggested that the company was on the cusp of entering self administration.

That came after Wiggle CRC’s parent company, Signa Sports United (SSU), revealed plans to restructure and delist from the New York Stock Exchange so it could resolve "severe liquidity and profitability challenges".

Those rumours proved to be true as the company filed for administration on Friday, meaning administrators were appointed to take over the running of the company, with the aim of securing a new buyer.

In a statement, the administrators expressed optimism that the brand, which includes Wiggle and Chain Reaction Cycles, would find new buyers: "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."

In the meantime the company will continue to operate, with the administrators confirming that, at present, all Wiggle CRC staff have been retained. At the time of writing, both the Wiggle and Chain Reaction Cycling platforms are still available to purchase from online.

However, there are concerns that the company’s current situation could have a knock-on effect for the rest of the industry.

GCN spoke to industry expert Jonathon Harker, who is editor of Cycling Industry News, on Friday and he believes that it will have an impact on suppliers and brands, many of which work with Wiggle CRC.

There is also the prospect that the company could try to sell off inventory at bargain prices, which would be “a real problem for an industry which is struggling to cope with huge overstocks”.

Check out the full interview with Jonathan Harker here.