Wiggle reportedly heading towards administration due to parent company funding woes

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Wiggle reportedly heading towards administration

Online cycling, running and swimming retailer Wiggle has reportedly entered voluntary administration in the wake of the funding crisis that has engulfed parent company, Germany-based Signa Sports United , after the company that controls it announced earlier this week that it would no longer be providing €150 million in funding to the business over the next two years.

As we reported yesterday, Signa Sports United , which bought Wiggle CRC in 2021, has had promised funding of €150 million withdrawn by parent company Signa Holding, which is controlled by the Austrian billionaire René Benko. On Tuesday, Frasers Group, which owns Sports Direct, House of Fraser and Evans Cycles, among other retail chains, announced that it had agreed to buy the German sporting goods retailer SportScheck, which trades from 34 outlets, from SSU.

Buying up retail chains and brands that have fallen on hard times, initially in the UK but now abroad too, was a key factor underpinning the growth of Sports Direct and subsequently Fraser Group. And with the two businesses, according to their latest annual reports and accounts, having around half the level of turnover in the UK cycling market as market leader Halfords , any potential deal would be likely to escape being blocked by the Competition & Markets Authority.

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