Major cycling distributors are slowly recovering millions of pounds owed to them by retailer Wiggle Chain Reaction Cycles (WiggleCRC).
The online retailer entered administration in October last year and, at the time, owed a total of £26.7million in debts to 400 creditors.
Among them were a host of UK suppliers and distributors, such as Madison, who were owed over £1million, Extra UK, owed just under £1million, and Saddleback, to whom WiggleCRC were indebted £815,082.
The company also owed money to Chicken Cyclekit (£627,765), Upgrade Bikes (£595,802), ZyroFisher (£289,400), Silverfish (£280,645) and Raleigh (£235,781), as well as major brands Garmin (£853,762), Science in Sport (£662,558) and helmet makers POC (£507,968).
The full list of creditors was published last month in a report from the administrators.
Curiously present among the cycling companies was confectionary giant Haribo, whose bags of sweets Wiggle provided free with orders, owed £20,275.
A source at one of the creditors told Cycling Weekly that they have been "recovering the cash" thanks to close cooperation with WiggleCRC’s joint administrators, FRP Advisory.
“We're trading down a debt,” the source explained. “Basically, they give us trading reports, and with that, we can invoice the administration with the cash to pay down the debt.
“We're actively trading with the administration of WiggleCRC to keep the business operational. They’re buying more stock to sell, very limited, but still proving to move the business forward.”
Another creditor told Cycling Weekly they had “an arrangement” with the administrators, and that their business had not been impacted by delays in settling debts.
While many companies continue to trade with WiggleCRC, one source said they were aware of some suppliers who had decided to stop selling stock to the retailer.
Despite this, WiggleCRC has witnessed an uptick in trade since entering administration.
In the report published last month, the administrators noted business had been “very positive”, with an income of almost £20million in the period from 24 October to 12 December.
This comes after the WiggleCRC group posted pre-tax losses of £97million in the year to 30 September 2022.
Cycling Weekly contacted the administrators for further details on WiggleCRC's debts, but they chose not to comment.
WiggleCRC is currently up for sale, and has received interest from 24 potential buyers.
