Frasers Group has saved bike retailer Wiggle from administration, with the retail company thought to have paid under £10m for its brand and intellectual property.
The group has agreed a deal to snap up the brand and intellectual property of both Wiggle and Chain Reaction Cycles, adding to its existing cycling companies, including Evans Cycles.
Wiggle collapsed in October and continued to trade during the administration process, with FRP Advisory handling the insolvency.
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Some 447 staff members are set to lose their jobs following the acquisition, according to The Sunday Times.
Frasers is understood to have been drawn to Wiggle’s strong online and social media presence, and believes it can help move its sports business upmarket.
The move comes as the cycling industry has faces huge challenges in recent years.
Disruption in global supply chains left it struggling to service demand but after bottlenecks eased, retailers were forced to discount excess stock.
Meanwhile, demand has been hit of late as the cost-of-living crisis has diminished discretionary spend.
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