Wiggle Chain Reaction ditches international websites to focus on …
The administrators of Wiggle Chain Reaction Cycles (Wiggle CRC) have said that they will close down the international websites of both online retailers to focus exclusively on the UK market, adding that the businesses, which entered administration in October, are proving “incredibly attractive” to potential buyers.
Joint administrators were appointed to the business in October, shortly after parent company, Berlin-based Signa Sports United, delisted its shares from the New York Stock Exchange after its owner, Signa Holding, failed to provide €150 million of previously committed funding.
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In an update, a copy of which was provided to road.cc, joint administrators Alastair Massey and Tony Wright from the advisory firm FRP revealed that the UK accounts for 85 per cent of revenues and that they are “directing a shift in the group’s business model which will see it focus its efforts solely on the UK market.”
The international websites, which serve customers around the world including within a number of EU countries, Australia and Japan, will be closed “over the coming weeks,” according to the administrators, who said that “this part of the business has been impacted by a range of economic factors including rising international air freight costs and Brexit.”
In its most recently published report and accounts which cover the year to 30 September 2022, Wiggle said that international sales had “declined by 26 per cent driven mainly by the full year impact of Brexit reducing sales into [the] EU where higher duty and fulfilment costs has necessitated higher pricing.”
The administrators added that “the business is committed to honouring all outstanding sales, returns and warranty obligations for international customers through the usual processes.”
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