Just a week after announcing it was headed into self-administration, online retailer Wiggle has today appeared on an insolvency notice posted on The Gazette, the United Kingdom’s Official Public Record, effectively confirming Wiggle Limited has entered administration as of October 24. The announcement covers both Wiggle and the Chain Reaction Cycles brand, which combined in 2016.
While self-administration would have seen Wiggle keep control of the reorganisation of its finances, entering administration means Wiggle has now handed over that control to an outside party. That will now lie with the administrators, listed as Alastair Rex Massey and Anthony Wright, both restructuring advisors with FRP Advisory Trading Limited on the insolvency notice. FRP is a large business advisory firm, and according to his bio on the firm’s web site, Wright’s “extensive experience” is said to include “the liquidation of the UK’s leading bed manufacturer, (and) the administration and successful sale of a Midlands-based manufacturing company saving over 90% of jobs.”
The administrators will now effectively run Wiggle Limited while it develops proposals of intended strategy to the company’s creditors. Administration is capped at 12 months (although extensions may be acquired) and the administrator will assess if the company and/or its assets can be sold as found, a restructuring happens, or ultimately if the company is to be liquidated. In a statement, FRP said all employees (roughly 450) would be retained and the company put up for sale.
Today’s news follows weeks of uncertainty and news of huge losses at Wiggle, culminating in last week’s news that Signa Holdings had rescinded its line of funding to Signa Sports United (SSU), Wiggle’s parent company.
No such insolvency notices have yet appeared for any of the WiggleCRC house brands such as Vitus and Nukeproof to name but a couple. However, Bikester and ProBikeKit, both under the SSU umbrella, have filed for insolvency in Germany. Furthermore, BikeBiz.com is reporting that WiggleCRC’s Hotlines distribution brand is operating on a proforma only basis for its accounts.
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