Frasers Group PLC (LSE:FRAS) has acquired the collapsed online bicycle retailer Wiggle, which went into administration in October, according to reports.
Mike Ashley’s retail empire will pay under £10 million for Wiggle’s brand and intellectual property and also acquire its subsidiary Chain Reaction Cycles, the online bike store.
Synergies are expected to be created as Frasers adds Wiggle to Evans Cycles, the UK’s largest high-street retailer which it also bought out of administration.
Around 450 Wiggle workers are expected to be axed following the deal.
Wiggle slipped into administration last year with around £155 million in debts at a time when the cycling industry has been experiencing challenges.
Supply chain disruptions initially inflated demand during the pandemic, however, once these issues were resolved and popularity died down, retailers were left with excess stock.
Discounting among retailers followed, further complicated by inflation and weakened consumer confidence.
Frasers reportedly sees value in Wiggle's robust online presence and social media engagement, which it believes aligns with its strategy to elevate its sports retail segment.
However, Frasers has yet to make an official statement regarding its plans for Wiggle's integration into its portfolio.