WiggleCRC owner SIGNA delists and restructures amid severe liquidity challenges

WiggleCRC owner SIGNA Sports United is accelerating a strategic realignment of the business as the company faces “severe liquidity and profitability challenges”.

In a year that is now being talked about as one of the very worst the cycling market has ever faced, the owner of big names like WiggleCRC, Fahrrad.de and Bikester is undergoing a downsizing and ‘performance enhancement’ programme for the company and all its subsidiaries with the aim of returning the business to profitability and free cash flow breakeven as soon as possible.

The first nine months of 2023 have seen material disruptions continue from the second half of last year, the business said. Although some economic indicators across core markets improved slightly, demand for the SIGNA Sport’s products remains “significantly below 2022 and pre-pandemic levels. Additionally, inventory levels across the industry remain elevated as “market participants still aim to clear excess inventory, resulting in a material adverse effect on gross markings and increasing negative cash flows”. That activity will range from ‘streamlining’ to termination or winding down of non-performing assets and potential sale of non-core assets to bring in some cash and liquidity.

Furthermore, SIGNA Sports will also be delisting the company’s shares on the New York Stock Exchange, where it was listed since late 2021 – just a few months after SIGNA acquired WiggleCRC in mid-2021 from former owner Bridgepoint. The price SIGNA paid for WiggleCRC was not disclosed at the time, but with WiggleCRC on board, net revenues were approx. $1.6 billion for FY ending Sept 2021 (for the combined business), covering the lockdown boom experienced by many in the trade.

Delisting will become effective around 22 October of this year.

SIGNA is also shuffling its Board of Directors, extending the scope of Torsten Waack van Wasen, CEO of Internetstores since February 2023, to become part of the Company’s management team as Chief Performance Officer (CPO) for the Group. Torsten Waack van Wasen has many years of restructuring experience from his prior positions, including at Alvarez & Marsal and Alteri Investors. After expiry of the contract of the Company’s CEO Stephan Zoll in the 1st quarter 2024, Torsten Waack van Wasen will follow him as CEO of the Company.