Wiggle CRC entering administration could have 'a huge impact on the bike trade' says industry expert

Industry expert Jonathon Harker has said the news that Wiggle Chain Reaction Cycles (WiggleCRC) has entered administration could have "a huge impact on the bike trade".

Harker is the Editor of Cycling Industry News, a business-to-business publication that is among the most respected voices in the industry.

Given that WiggleCRC works with a very large proportion of bike brands, Harker is concerned that many of Wiggle's suppliers may struggle.

"There are potentially a lot of unpaid bills, which will hit the finances and liquidity of most cycle industry suppliers," says Harker

"That's a serious concern."

Read more: Wiggle Chain Reaction Cycles goes into administration

Additionally, Harker is concerned that WiggleCRC will be forced to sell its £78m of inventory at bargain prices.

"Great for consumers in the short term," says Harker, "but a real problem for an industry which is struggling to cope with huge overstocks.

"That's a situation everyone in the trade will want to avoid."

No one knows what fate lies ahead for WiggleCRC. A statement from the administrators this afternoon indicated that they were preparing to sell the company on, but nothing is certain.

If Wiggle were to close up shop, Harker says this would leave "a large gap to fill" and one that other big players would leap to fill. Interestingly, Harker notes that along with the likes of Halfords and Evans Cycles, "local bike shops will also be hoping for some longer-term uplift."

For Harker, this news is yet more proof that the style of retailing that the cycling industry has evolved is not sustainable.

"It's likely – maybe even preferable – that there is some soul searching as the trade rebuilds in 2024," he said, noting that 2023 has seen a number of significant players fall to their knees.

"Questioning the wisdom of working within tight margins, heavy discounting, failing to reach out to a more diverse range of customers – including those that are not interested in ‘sports’ cycling... the industry might take the opportunity to recalibrate."