As the insolvency proceeding spreads through the SIGNA Sports United Group, the moves to find buyers for a number of businesses within it are being set in train, with Wiggle CRC among the operations drawing interest.
Frasers Group has already been named in media reports as a potential buyer, but while the administrators of the operation, who were appointed last week, didn't mention any names they did say they were talking with more than one prospective purchaser of Wiggle CRC.
"We are actively marketing the business for sale and are already in discussion with a number of interested parties so would encourage any potential buyers to get in touch without delay," said FRP Advisory Partner Alastair Massey, who has been appointed as joint administrator alongside Tony Wright, on LinkedIn.
Wiggle and Chain Reaction Cycles merged in 2016, with the online retailers of bikes and accessories forming Wiggle CRC, which was then acquired by Signa Sports United in 2021, which struck financial trouble that came to a head last month, triggering insolvency proceedings. Still, Black Friday sales are rolling on with the joint administrators from FRP having said in a statement sent to Cyclingnews last week that operations are "running as normal, including the websites and online sales of Wiggle.com, ChainReactionCycles.com and Hotlines-UK.com".
It was also confirmed this week that there were separate liquidation procedures underway for other Signa Sports United businesses in Germany. Among those businesses is Internetstores GmbH, which operates more than 32 online specialty stores for bicycles, accessories and other sporting goods. Brands include fahrrad.de, Bikester, Probikeshop, Brügelmann and VOTEC.
Dr. Christian Gerloff has been appointed as the provisional insolvency administrator of Internetstores by the Stuttgart Local Court and also Tennis-Point GmbH, with proceedings pending in Bielefeld Local Court. The administrator on Tuesday sent out out a release that said both companies would continue to operate – with goods returns and complaints relating to both old orders and new business also being processed – and there had been considerable interest from prospective buyers.
"Tennis-Point and Internetstores have a strong international market position in their respective segments of the sports market and a loyal customer base," said Gerloff, a a lawyer and shareholder at Gerloff Liebler Rechtsanwälte. "The teams of both companies are also highly motivated to continue providing their customers with the best possible service.
"The quite impressive number of addresses that have already actively expressed their interest shows that the chances for good future solutions are basically given."
The move to file for insolvency across the businesses came after the termination of the commitment to provide an additional €150 million in financing by SIGNA Holding GmbH on October 16, 2023 which left SIGNA Sports United without enough funds to cover its operational financing needs.
The group had already signalled that is was facing considerable difficulties before the equity commitment was terminated. In early October it announced a plan to restructure the business and delist its shares from the New York Stock Exchange as subdued demand and market overstock continued to "severely adversely impact the Company’s financial results and liquidity".
