Frasers Group buys bike retailer’s brand from administrators, ending rescue hopes

Shirebrook-based Frasers Group has agreed to buy bike retailer Wiggle’s brand and intellectual property that ends any slim chance of a rescue deal for the company.

Administrators from FRP Advisory have been running the company since October and had initially been confident that a sale of the business could be achieved and most of the 447 jobs could be saved.

However the Frasers deal will result in the remaining workforce losing their jobs.

Sports Direct-owner Frasers has previously bought Evans Cycles and ProBikeKit from administrators, in 2018 and 2023 respectively.

The deal Wiggle and Chain Reaction Cycles IP is reported to be for “less than £10m”.

The cycling sector is currently in crisis despite a big increase in purchases and participation during the pandemic.

Specialist bike companies Orange Mountain Bikes, Planet X, 2pure and Moore Large have all been in administration in the past year, while Halfords issued a profit warning last week in part because of the weak sales in its cycling division.

Disruptions in global supply chains initially hindered the industry’s ability to meet demand. Although these bottlenecks have eased, retailers have had to resort to discounting excess stock.

Moreover, recent declines in discretionary spending due to the cost-of-living crisis have further impacted demand for cycling products.