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Wiggle could face insolvency following its owner Signa Holding has withdrawn funds from the division that owns the bikes etailer.<\/p>\n
According to CyclingNews, Wiggle has stopped paying suppliers, cancelled orders and is not receiving goods until further notice.<\/p>\n
Last Monday, Signa \u2013 which co-owns Selfridges \u2013 ended an \u00a3130m funding commitment to its sports division Signa Sports United (SSU).<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\nSSU, which bought Wiggle in 2021, said the \u201cunjustified\u201d move jeopardises its ability to continue as a going concern.<\/p>\n
Following the funding withdrawal, it placed the online retailer, Tennis-Point, into insolvency and warned that other subsidiaries would follow.<\/p>\n
SSU previously announced plans to delist from the New York Stock Exchange as it claimed to experience \u201csevere profitability challenges\u201d.<\/p>\n
Wiggle sales fell 30% last year to \u00a3252.5m as the cycling etailer made a loss of \u00a3111.2m.<\/p>\n
The company had been owned by private equity firm Bridgepoint since 2011, and also included Chain Reaction Cycles, the rival firm it acquired in 2016.<\/p>\n
Wiggle was hit hard in the aftermath of the pandemic boom in bike sales and when SSU bought the business it settled the \u00a3313 million of debts that the retailer had accrued under Bridgepoint, according to The Times.<\/p>\n
SSU, which bought Wiggle in 2021, said the \u201cunjustified\u201d move jeopardises its ability to continue as a going concern.<\/p>\n
Following the funding withdrawal, it placed the online retailer, Tennis-Point, into insolvency and warned that other subsidiaries would follow.<\/p>\n
SSU previously announced plans to delist from the New York Stock Exchange as it claimed to experience \u201csevere profitability challenges\u201d.<\/p>\n
Wiggle sales fell 30% last year to \u00a3252.5m as the cycling etailer made a loss of \u00a3111.2m.<\/p>\n
The company had been owned by private equity firm Bridgepoint since 2011, and also included Chain Reaction Cycles, the rival firm it acquired in 2016.<\/p>\n
Wiggle was hit hard in the aftermath of the pandemic boom in bike sales and when SSU bought the business it settled the \u00a3313 million of debts that the retailer had accrued under Bridgepoint, according to The Times.<\/p>\n