Wiggle/Chain Reaction owner Signa Sports sales up 48% but lost 37 million euros

[Ross]

https://www.bicycleretailer.com/interna ... s-sales-48

BERLIN (BRAIN) — E-commerce retailer Signa Sports United reported its first quarterly results that included numbers from WiggleCRC and Tennis Express, which it acquired in December. Quarterly sales were up 48%to 269 million euros ($288 million).

The company recorded a net loss of 37 million euros, compared to a net loss of 11 million euros in the same quarter last year.

Total visits to its e-commerce sites were 78.9 million, up 28% from the same period last year. Net orders were up 55% while net order value went down 4.5% to 102 euros.

The company said it continued to suffer from full bike and e-bike shortages and other economic challenges.

[MichaelB]

And now REALLY in the poo !!!

Lucky my last order just got delivered !!!!


https://www.cyclingnews.com/news/wiggle ... cial-woes/

[AUbicycles]

Signa files for insolvency in the US as the Berlin based HQ couldn’t close a 150 million euro funding / investment.

This is a disaster for cycling brands who are owed money… so a really bad roll-on effect that could put smaller brands into trouble.

Unfortunately also a customer beware… once the biggest online bike shops Wiggle and c r c appear to still be accepting orders. Customers who pay and do not receive goods would stand last in line for compensation if goods are not received. All existing customers with order issues (eg returns) could be stuck and warranty / garantee resolution (of purchases) typically woukd be directed directly to the brand if the seller is unable to resolve.

[warthog1]

Bugger. Have bought quite a bit of gear through them and really like their DHB bibs. Also have 5 of their Winter jackets. Price has been great (particularly on sale) and service reliable. Not happy to hear this.

[MichaelB]

Hopefully someone steps up and buys it as a going concern.

I’ll keep my eye out to see what eventuates !

[MichaelB]

From WW, it’s not just Wiggle/c r c, there are some others involved as well

Addnature.com
Ballside.de
Bikester.com
Bruegelmann.de
Campz.de
this link is broken
Cycles-for-heroes.com
Fahrrad.de
Ortler-rad.at
Padel-point.de
Probikeshop.com
Redcycling.de
Serious-Cycles.com
Tennis-Point.de
Tennispro.eu
Tennisexpress.com
Vermont-bikes.de
Votec.de
this link is broken

[blizzard]

Damn, I was wanting to buy a pair of their Prime handlebars, probably best not to now.

[Calvin27]

Damn, I was wanting to buy a pair of their Prime handlebars, probably best not to now.

Buy them when they are on fire sale prices.

[ningnangnong]

Well this is crap news. Like warthog, I'm a big fan of the DHB bibs.

Even have a $100 birthday voucher for c r c I am yet to use.

[blizzard]

Damn, I was wanting to buy a pair of their Prime handlebars, probably best not to now.

Buy them when they are on fire sale prices.

That's the plan now. Hopefully they will actually turn up.

[Mr Purple]

Unfortunately also a customer beware… once the biggest online bike shops Wiggle and c r c appear to still be accepting orders. Customers who pay and do not receive goods would stand last in line for compensation if goods are not received. All existing customers with order issues (eg returns) could be stuck and warranty / garantee resolution (of purchases) typically woukd be directed directly to the brand if the seller is unable to resolve.

Buy it on credit card if you're risking it. I personally won't - I lost about $450 in car parts when a well known Valiant parts business went under a few years back. Joined the creditor list, saw absolutely nothing. The customers are always the last paid back.

[MichaelB]

Well this is crap news. Like warthog, I'm a big fan of the DHB bibs.

Even have a $100 birthday voucher for c r c I am yet to use.

That sucks.

Might as well try and use it and see what happens, as if the company does get sold, often the vouchers are null & void

[Mububban]

So, is there any explanation as to WHY they've run out of money? I've certainly sent a lot of money their way over the years, and have always been more than impressed by their range, prices and customer service.

[MichaelB]

So, is there any explanation as to WHY they've run out of money? I've certainly sent a lot of money their way over the years, and have always been more than impressed by their range, prices and customer service.

Seems that the ultimate Parent company is a Real Estate mob (I've seen elsewhere), and the holding company that owns all of the sports retail ones pulled the plug on their 150M Euro funding line, but haven't stated why.

Guess the $$ are just not flowing in the right direction !

[Retrobyte]

Black Friday sale starting early - up to 60% off

[Comedian]

Thats a shame. The cost of bike parts is slowly rising and this isn't going to help.

[MichaelB]

https://www.cyclingnews.com/news/wiggle ... cial-woes/

Internetstores GmbH, the European subsidiary of Signa Sport United N.V (SSU) has filed for insolvency, reports German website, Diebewertung.

In an application filed in the Stuttgart District Court, the news follows last week's news that the company was cancelling purchase orders with suppliers as it prepared to do so.
Internetstores is the umbrella company above more than 40 eCommerce brands across 15 European countries, many of which operate in the bike industry, including Probikeshop, Bikester, Fahrrad.de, Red Cycling Products, Fixie Inc, Vermont Bikes, Serious Cycles, Ortler, Votec, and Brugelmann. It is unclear what will happen with each of these individual entities.

Think there is a fair bit of stuff still to come out, sadly.

The Inetrnetstores mob reportedly employed 600 people.

What really surprises me is the speed of which the insolvency has happened and spread, and just how many 'entities' are impacted.

[antigee]

So, is there any explanation as to WHY they've run out of money? I've certainly sent a lot of money their way over the years, and have always been more than impressed by their range, prices and customer service.

Seems that the ultimate Parent company is a Real Estate mob (I've seen elsewhere), and the holding company that owns all of the sports retail ones pulled the plug on their 150M Euro funding line, but haven't stated why.

Guess the $$ are just not flowing in the right direction !

small part of a very large business empire...article linked below reports:

"Of the original €150 million commitment, €143 million remains undrawn to date"

so rather than support the businesses it looks very cut and run what looks like a working capital requirement is probably pretty small for the businesses concerned unless withdrawing the credit line meant other lenders got cold feet

https://cyclingindustry.news/wiggle-c r c ... rmination/

Edit: I'm not an expert on balance sheets but looking at their US financial quarterly reporting for Signa Sports United the holding co the Euro150m was in addition to Euro130m put into co' in 2022 which looking at the negative free cash flow prediction would be burnt through in the next few months...

https://investor.signa-sportsunited.com ... fault.aspx

[LateStarter]

Less that 2 years ago !

"Welcome a new $1 billion-plus player to the bike industry."

https://www.bicycleretailer.com/interna ... elleration

[grt046]

Now in administration according to GCN report with huge stock holding to shift

[find_bruce]

Yep - Wiggle in administration & rest of group is expected to follow suit, with the lot up for sale as administrators step in

[MichaelB]

Yep - Wiggle in administration & rest of group is expected to follow suit, with the lot up for sale as administrators step in

As much as they say it business as usual, I wouldn’t be buying anything atm.
Even if it is a great deal !

[Comedian]

I'll miss Wiggle if it disappears. It hasn't quite been what it was in the early days since GST and geofencing - but I still find it useful from time to time.

[MichaelB]

A long post/article (that I am reading through), but really shows that even the Overall company owner of the mess is also at major risk. Article is from LinkedIn and is by Jacob Dudek, who was the VP of Commercial Operations at SIGNA Sports United before he lost his job amid the turmoil

eeeeeek

https://www.linkedin.com/pulse/postmort ... dek-xau9f/

[elantra]

A long post/article (that I am reading through), but really shows that even the Overall company owner of the mess is also at major risk. Article is from LinkedIn and is by Jacob Dudek, who was the VP of Commercial Operations at SIGNA Sports United before he lost his job amid the turmoil

eeeeeek

https://www.linkedin.com/pulse/postmort ... dek-xau9f/

Yikes ! What a read.
I guess that I probably understand about 5 % of what is written, but enough to realise that big business is a very complex place
And that’s putting it mildly.