Frasers Group capitalises on failing bicycle business

Frasers Group has once again made headlines for purchasing a struggling brand out of administration. This time, the retail giant has scooped up online bicycle retailer Wiggle.

Frasers, the owner of Sports Direct, has agreed to purchase the brand and intellectual property of two bike stores, Wiggle and Chain Reaction Cycles, according to The Times.

Frasers continues to capitalise on the distress coursing through the industry, reportedly paying less than £10 million for the acquisition. Wiggle will add to Frasers’ existing cycling business, which includes Evans Cycles.

The deal comes with the cycling industry in turmoil as global supply chains have left the industry struggling to service the booming demand it enjoyed during the pandemic.

Wiggle collapsed in October 2023, with debts piling up to £155 million. The deal with Frasers will lead to 447 employees losing their jobs.

Fraser's foray into the fitness retail realm is nothing new. In January, the company acquired the CrossFit and fitness brand WIT Fitness. This came just days after the group announced it had levelled up its stakes in ASOS and Boohoo yet again, continuing to fuel rumours of an ASOS and Boohoo mega-merger.

Read TheIndustry.fashion's feature 'Frasers special: How the retail giant dominated in 2023' here to learn more.