Distributor Hotlines Europe heads into administration
In not entirely unexpected news, distributor Hotlines Europe has sadly entered administration.
The business, stablemate of also-in-administration WiggleCRC, is owned by SIGNA Sport United NV. Long battling difficult financial challenges, the move by holding company SIGNA Holding to withdraw its unconditional €150 million Equity Commitment to SIGNA Sports in mid-October proved to be the final straw, plunging a number of industry stalwarts in adminstration.
Hotlines was distributor of Nukeproof, Ragley, Leatt, Brand-X and Lifeline, among other brands. Earlier this year the firm announced it was reducing its distribution portfolio, parting ways with Fuji, SE Bikes and Breezer.
Hotlines was one of two well-known Scottish bike industry distributors, the other being 2pure which sadly also entered administration in May.
As of 24 October, the affairs, business and property of Hotlines Europe became managed by the appointed Joint Administrators Anthony John Wright and Alastair Rex Massey. The Joint Administrators act as agents of the Company and without personal liability.
2023 has seen a number of other bike industry names enter administration, including Moore Large and Fli Distribution. There have also been a number of retailers close, including the likes of Velorution, while Evans Cycles-owner Frasers Group moved to save ProBikeKit from closure. Meanwhile Trek gave one small retail chain a loan to continue trading.
The fall out from the decision made by SIGNA Holding to withdraw its €150 million support to SIGNA Sports will likely continue to play out, probably being the biggest business to fail so far in the current difficult trading conditions experienced in the cycle industry.
