WiggleCRC Group refocuses efforts on the UK market amid search for buyer
In a surprising move, administrators have announced that the international eCommerce stores for popular cycling retailers Wiggle and Chain Reaction Cycles will be switched off. The decision comes as the WiggleCRC Group, which entered administration in October, aims to focus its efforts solely on the UK market. The transition is expected to take place over the coming weeks as the group continues its search for a buyer. This article will explore the reasons behind this strategic shift and its potential impact on customers and the wider cycling industry.
1: The Background Story
The WiggleCRC Group, comprising parent companies Mapil Midco 1 Limited and Wiggle Limited, as well as sister companies Chain Reaction Cycles Limited, Chain Reaction Cycles Retail Limited, and Hotlines Europe Limited, faced financial difficulties after its majority shareholder, Signa Holdings, reneged on €150m of committed funding. This setback forced the group into administration, with Alastair Massey and Tony Wright from FRP appointed as Joint Administrators.
2: Focusing on the UK Market
According to the Joint Administrators, the UK market accounts for a significant 85% of the WiggleCRC group’s revenue. As a result, the decision has been made to pivot the business model and concentrate solely on the domestic market. This move aims to ensure that WiggleCRC can build on its core strengths and maintain its market-leading position in the UK. Consequently, the international Wiggle and Chain Reaction web shops will be closed in the coming weeks.
3: Impact of Economic Factors
The international part of the WiggleCRC business has been affected by various economic factors, including Brexit and rising air freight costs. These challenges have contributed to the decision to withdraw from international markets and focus on the UK. However, delivery to the UK will still be available from both Wiggle and Chain Reaction Cycles.
4: Sale Process and Future Prospects
The administrators have stated that the process to sell the WiggleCRC business is progressing swiftly, with ongoing talks with multiple interested parties. The UK proposition of the business has proven to be highly attractive to potential buyers. While the closure of international eCommerce stores may seem drastic, the administrators believe that this strategic shift will position WiggleCRC in a stronger position for future profitability.
5: Honoring Commitments to International Customers
Existing customers and those with open orders on the international websites have been assured that the group will honor all outstanding sales, returns, and warranty obligations. This commitment demonstrates the administrators’ dedication to maintaining customer satisfaction during the transition period.
Conclusion:
The decision to shut down the international eCommerce stores for Wiggle and Chain Reaction Cycles marks a significant shift in the WiggleCRC Group’s strategy. By focusing solely on the UK market, the group aims to capitalize on its core strengths and maintain its market-leading position. While economic factors and the challenges of Brexit have played a role in this decision, the administrators remain optimistic about the future prospects of the business. As the sale process progresses, customers can expect continued support and service, ensuring a smooth transition during this period of change.
Leave a Reply