Wiggle/CRC future in doubt

[samson99]

24 minutes ago, shaper said:

Wiggle / CRC have started their Black Friday sales already https://www.cyclist.co.uk/buying-guides/wiggle-black-friday-clearance-sales?fbclid=IwAR3UoyadynGogJs4p7Pdkb06ujp9FrIxgvJQ31oKS4FTLAtYV7NH2nXhy3I

I guess they are looking for cashflow.....

prices are still more expensive than on Bike24 for most of the items i want 🤣 even with the discount

[Baron]

Wiggle CRC problems can be from Brexit. With regards to international sales, 38% of the company’s £252million annual revenue came from outside the UK. The directors, however, pointed to a fall in sales caused by Britain's exit from the EU.

Before Brexit no import duty was paid by buyers from EU. After Brexit buyers have to pay import duty. So most EU buyer is nou using German and other EU stores. Bikeinn https://www.tradeinn.com/bikeinn/en/castelli- and  Bike- Components. https://www.bike-components.de/en/accessories/

I live in the UK and buy mostly from them as they have a wider variety of components than Wiggle CRC and their price is very competitive.

[Schnavel]

Wasn't Brexit meant to fix all of the UK problems? That's why the vote was won...

[shaper]

Into administration https://www.globalcyclingnetwork.com/general/news/wiggle-chain-reaction-cycles-goes-into-administration

[Brawler]

https://www.chainreactioncycles.com/international-update

[BigDL]

2 hours ago, Brawler said:

https://www.chainreactioncycles.com/international-update

They announced this last week - Said that the international market post Brexit was costing them money. The aim is to consolidate and focus on the UK market. 

Had a friend over for Dinner recently who works for a fairly large importer and wholesaler in the UK. Said that CRC/wiggle are sending truckloads of old stock back to suppliers to try and offset debt. Literally stock that they received 5-10 years ago in some cases, with no warning and no prior agreement. 

 

[Shebeen]

2 hours ago, BigDL said:

They announced this last week - Said that the international market post Brexit was costing them money. The aim is to consolidate and focus on the UK market. 

Had a friend over for Dinner recently who works for a fairly large importer and wholesaler in the UK. Said that CRC/wiggle are sending truckloads of old stock back to suppliers to try and offset debt. Literally stock that they received 5-10 years ago in some cases, with no warning and no prior agreement. 

 

10yr old stock. On consignment the whole time or paid for and now they want credit/new stock?

Good luck to the book keepers

[BigDL]

1 hour ago, Shebeen said:

10yr old stock. On consignment the whole time or paid for and now they want credit/new stock?

Good luck to the book keepers

Bought and paid for years ago. He reckons that they must have had heaps of stuff in warehouses for years and years. He said that they tried to return stuff that they his employer hasn’t stocked for 5 years 

[Shebeen]

6 hours ago, BigDL said:

Bought and paid for years ago. He reckons that they must have had heaps of stuff in warehouses for years and years. He said that they tried to return stuff that they his employer hasn’t stocked for 5 years 

probably the surest sign that their business model is very hard to get right. If you want to stock everything cycling, you need to actually stock everything cycling. Things shouldn't be sitting around for that long in large quantities, and the obvious way to shift stock like this is discounting to consumers.

 

 

[BaGearA]

8 hours ago, Shebeen said:

10yr old stock. On consignment the whole time or paid for and now they want credit/new stock?

Good luck to the book keepers

What supplier in the world will take back stock that was paid for 5/10 years prior and then give credit.

 

Refund is hopeless but wanting a credit is down right desperate especially since that supplier is facing the same challenges given they share a industry.

 

Bone head move imo 

 

Sell for cost - 10% locally exclusive 

 

That cuts out shipping admin and unless its 10 million kenda tyres they might actually recoup some money 

[Dexter-morgan]

I wonder if Aramex Global shopper will still work.

[Jewbacca]

2 hours ago, BaGearA said:

What supplier in the world will take back stock that was paid for 5/10 years prior and then give credit.

 

Refund is hopeless but wanting a credit is down right desperate especially since that supplier is facing the same challenges given they share a industry.

 

Bone head move imo 

 

Sell for cost - 10% locally exclusive 

 

That cuts out shipping admin and unless its 10 million kenda tyres they might actually recoup some money 

But they ARE desperate?

The business is folding, so they will try to accrue any sort of credit or value however they can.

If the suppliers say no then they are in the same place as before. Supplier says we will pay you 15c to the pound value, boom, that's a win.

Warehousing and storage space gets free'd up which means rental units can be vacated OR owned units can be rented out for revenue. 

The company is under administration isn't it? They will be clearing avenues to keep from filing for insolvency.

But it's fine, I'm not sure why everyone is panicking. 

The bike industry is absolutely fine and doing better than it was pre covid. All the massive companies closing down aren't indicative of the truth.......... 🫠

[Phillippe Coetzee]

1 hour ago, Dexter-morgan said:

I wonder if Aramex Global shopper will still work.

cant see why not

[lechatnoir]

4 minutes ago, Phillippe Coetzee said:

cant see why not

It will, but you'll be paying the 20% GST at checkout, which is moot if the item can't be had here for love or money...

[Pandatron]

Sure Brexit played a part, but heaps of 10 - 5 year old stock, sounds like a business issue.

[DrRichard]

UK bike industry may not be so fine and doing well?

https://www.cyclingweekly.com/news/bike-sales-hit-new-historic-low-as-cost-of-living-crisis-bites