Wiggle CRC facing self administration

According to several reports Wiggle CRC are on the cusp of entering self administration due to a funding crisis involving its parent company.

Wiggle CRC is owned by Signa Sports United (SSU), who have recently been delisted from the New York stock exchange. This has been due to ongoing financial uncertainty across the Signa Sports portfolio, and is not exclusive to just the cycling retailer.

Cycling Electric were the first to break this story, discovering that $150 million had been pulled from Signa Sport Holdings, the largest shareholder in SSU.

The pressure of this financial uncertainty can be seen when looking at the financial figures for this year, with Wiggle CRC reporting a pre tax loss of £97,041,000 for the last financial year ending September 30, 2023.

Self administration is a process that allows some level of protection for companies, allowing them to continue to trade, whilst also looking at ways to restructure and find new funding.

Should the period of self administration fail to alleviate the financial woes of the company, it will then face full administration, which will see the company transferred from the current directors to administrators, who will look to generate value for the creditors.

It is worth noting that Wiggle CRC are the parent company of brands such as Vitus.

With Wiggle CRC being such a giant online cycling retailer, the fall out from this could cause ripples through the whole bike industry.