The collapse of Wiggle, Chain Reaction, Bikester, Fahrrad, Probike or Bikeshop threatens the cycling sector and forecasts big discounts

Cataclysm among the big online shops after Signa Sports United, the company to which Wiggle and Chain Reaction belong, was suspended from the stock market due to its financial problems. Problems that have also affected other well-known online shops belonging to the same business group.

Crisis for the big online cycling shops

The cycling division of Signa Sports United announced a few days ago the paralysis of all its operations and points to its dissolution. A situation that has been reached after being affected by the crisis suffered in recent years by the online retail sector by WiggleCRC, the company that resulted from the merger of two giants such as Wiggle and Chain Reaction Cycles.

It has also been affected by the economic situation of the parent company Tennis-Point GmbH, a subsidiary of the company in Germany, which has already filed for insolvency proceedings and which includes shops such as Bikester, Fahrrad, Probike or Bikeshop.

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Signa Sports United began trading on the New York Stock Exchange at the end of 2021. At that time, its shares were trading at around $9, a figure that by early October had fallen to $0.94 due to, according to the company itself, "liquidity and profitability issues" caused by reduced demand and excess inventory that have diminished the company's performance.

A bubble situation that had been predicted in many areas of the cycling world with online shops offering unattainable prices for the majority, based on an accumulation of huge amounts of stock, and which has ended up drowning the company after the financial support of Signa Holding, the parent company of Signa Sports United, ceased.

For the consumer, in the first instance, it is to be expected that these online retailers will try to sell as many products as possible in order to minimise losses as a preliminary step to their dissolution. However, the implications of this could go further and affect other online and retail shops that may see their sales diminish if the expected avalanche of offers from these giants takes place. In fact, Wiggle and Chain Reaction, are already showing Black Friday labelled offers of up to 60% on some of their products.

Obviously, many brands will also feel the cataclysm of these shops, as the store schedules were an important sales volume for many of them. All in all, turbulent times for the cycling market and an uncertain outcome.