Wiggle, the online bicycle retailer, could plunge into insolvency after its parent company Signa Holding, the co-owner of Selfridges, withdrew funding of £130 million to its sports division, reports revealed.
Signa Sports United (SSU), the division responsible for the conglomerate’s ownership of Wiggle, had its funding commitment terminated last Monday and as a result has placed Tennis-Point, the online retailer, into administration, with more subsidiaries expected to follow.
Having bought Wiggle from private equity firm Bridgepoint in 2021, the Rene Benko-owned investment group had aimed to capitalise on the cycling boom driven by the pandemic but has been forced to settle more than £310 million in debts and extend a loan of around €20 million since the purchase.
Last year, sales at Wiggle, which employs around 800 staff members, slipped by 30% to around £250 million, leading to a loss of £111 million.
Wiggle declined to comment.
Signa has been investing heavily in the real estate industry over the last few years, holding stakes in various luxury hotels and department stores including the Chrysler Building in New York.
Last year, alongside Thai investor Central Group, Signa purchased Selfridges for £4 billion, although the move has resulted in around £1.7 billion in debt being added onto the group.