Key player of the bicycle market, Wiggle Chain Reaction Cycles, set to close down

Industry expert Jonathon Harker, the Editor of Cycling Industry News publication, has said the news that Wiggle Chain Reaction Cycles (WiggleCRC) has entered administration could have a huge impact on the bike trade.

Given that WiggleCRC works with a very large proportion of bike brands, Harker is concerned that many of Wiggle's suppliers may struggle. "There are potentially a lot of unpaid bills, which will hit the finances and liquidity of most cycle industry suppliers," says Harker. "That's a serious concern."

Additionally, Harker is concerned that WiggleCRC will be forced to sell its £78m of inventory at bargain prices. "Great for consumers in the short term," says Harker, "but a real problem for an industry which is struggling to cope with huge overstocks. That's a situation everyone in the trade will want to avoid."

No one knows what fate lies ahead for WiggleCRC. A statement from the administrators this afternoon indicated that they were preparing to sell the company on, but nothing is certain. If Wiggle were to close up shop, Harker says this would leave "a large gap to fill" and one that other big players would leap to fill. Interestingly, Harker notes that along with the likes of Halfords and Evans Cycles, "local bike shops will also be hoping for some longer-term uplift."