Wiggle Limited - Case Update

The final nail in the coffin for online sports retailer Wiggle occurred when its parent company “unexpectedly announced” the termination of an unconditional €150 million funding commitment that had been put in place to provide operational financing for the Signa Sports group, according to joint administrators Alastair Massey and Anthony Wright of FRP.

The joint administrators were appointed on 24 October following news that Wiggle’s parent, Signa Sports, was restructuring and had been delisted from the New York Stock Exchange. The news came at a time when Wiggle, like the wider cycling industry, had been experiencing reduced demand and record losses.

Since their appointment, the administrators’ focus has been on securing a sale. They have contacted 58 parties, resulting in 24 NDAs being signed and 7 parties meeting with the management team on at least one occasion. Funded offers were due on 4 December.

At the time of their proposals, the joint administrators could not provide further details since the sale process was still ongoing. The company is rumoured to have received rescue bids from Halfords and Frasers.

The joint administrators have said that there may be a distribution to unsecured creditors, but that this will depend on the outcome of any sale.

The joint administrators have been assisted by Osborne Clarke (legal) and Hilco (valuation). Their proposals can be found HERE.