High street magnate Mike Ashley’s Frasers Group is reportedly in the running to buy Wiggle Chain Reaction Cycles after the group entered administration last week.
WiggleCRC appointed administrator FRP Advisory following a period of financial difficulty for its parent company, Signa Sports United (SSU), which lost €150 million (£130 million) in financing guarantees, Tuesday last week. The online retail giant will now be put up for sale, with Frasers Group rumoured to be potential buyers, according to Sky News.
Ashley’s portfolio, led by Sports Direct, already counts Evans Cycles, which it acquired for £8 million in 2018, after the company entered administration. Earlier this month, Frasers Group agreed to purchase German chain SportScheck, a subsidiary of SSU like WiggleCRC.
As Wiggle CRC's turnover far exceeds the £1 million threshold, a potential takeover could be looked at by the Competition and Markets Authority. In addition, combining Evans and Wiggle CRC could potentially result in Frasers holding more than a 25% stake in the cycling market.
Wiggle CRC's administrator has said that the company will continue to run "as normal" while a buyer is sought.
Should the company fail to find a buyer, it is possible that all stock and assets could be sold off cheaply as part of the administration. This is likely to come as good news to consumers in the short term, but has left independent cycling dealers concerned about "turmoil", with bargain prices undercutting the market.
"That's my biggest concern," Luke Humphreys, owner of UK-based wheel. brand Pacenti, told Cycling Weekly.
This story is from the November 02, 2023 edition of Cycling Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 02, 2023 edition of Cycling Weekly.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Look KG 241
Handmade French carbon from the 1990s' biggest innovators
LET'S TALK ABOUT...DEPRESSION
Rates of depression have risen dramatically since the pandemic and cyclists aren't immune, as Chris Marshall-Bell finds out
TILTING AT TOWERS
Faced with a daunting weather forecast, Tom Davidson takes on Alice Towers’s favourite training loop and learns how block headwinds forge champions
RACE BIKE OF THE YEAR 2024
Cycling Weekly crowns its ultimate king of the road
THE HUB
All the news you might have missed from the last seven days
JACOB TIPPER - Are armchair experts any good?
In recent years, the world of professional cycling has seen the rise of a new type of enthusiast: the armchair cycling fan or Twitter expert.
Tour de Suisse - 9-16 June Switzerland
A year on from Gino Mäder’s tragic death at the race, the Tour de Suisse returns to the calendar with poignant tributes to the Swiss rider.
WorldTour stars find Unbound Gravel a struggle
Matej Mohorič might be the gravel world champion, but he was unable to complete gravel's biggest race last weekend
Tour of Britain Women - 6-9 June
After months of doubt over whether it would take place, the Tour of Britain Women gets underway in Welshpool, Powys, this afternoon.
Pidcock: all in on the Olympics
Tom Pidcock tells Tom Thewlis he is fully focused on gold in Paris this summer