Buyers circle troubled Wiggle

Frasers Group said to be in the market for online retailer after it entered administration

- Tom Davidson

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.