Wiggle Chain Reaction Cycles (WiggleCRC) is already in discussions with a number of parties interested in acquiring the business.
The group filed for administration last Tuesday, just a week after its parent company, Signa Sports United (SSU) lost €150million (£130million) in financing guarantees.
London-based FRP Advisory were appointed as administrators and are now preparing the business for sale. Already, the administrators say, potential buyers are queuing up.
Writing on LinkedIn on Monday, FRP Advisory partner Alastair Massey urged interested companies to "get in touch without delay”.
“We are actively marketing the business for sale and are already in discussion with a number of interested parties,” Massey wrote.
Last week, Sky news reported retail magnate Mike Ashley’s Frasers Group was mulling a takeover deal.
Frasers’ portfolio, led by Sports Direct, already counts cycling retailer Evans Cycles, which it acquired for £8million in 2018, after the company entered administration.
Earlier this month, Ashley agreed to purchase German chain SportScheck, a subsidiary of SSU like WiggleCRC.
In a statement shared last week, FRP Advisory partner Tony Wright, said: “WiggleCRC is one of Europe’s best-known sports retailers and has built a committed customer following in the cycling community. The administration provides a crucial period of protection for WiggleCRC as we prepare to market the business for sale.
“The group has a quality stable of brands and a leading market position, so we expect there to be interest and encourage potential buyers to come forward.”
In the company accounts made up to 30 September 2022, WiggleCRC posted a loss before tax of over £97million. Chief finance officer, Adrian Bruce, wrote in an accompanying statement that the group was “suffering from the aftereffects of the Covid pandemic”, and cited Brexit as a factor in declining international sales.
WiggleCRC will continue to trade “as normal” while the administrators market the business.
There are currently fears across the industry that, should the group fail to find a buyer, its stock will be sold off cheaply as part of the administration. Cycling traders have warned there could be “turmoil” if this happens, with discounted prices undercutting an already struggling market.
SSU, WiggleCRC's parent company, filed for insolvency in a German court on Friday.
