Bankrupt Bike Brand Allegedly Owes More Than £30k To Former Team Rider
When a company enters administration for bankruptcy, there is no shortage of dirty laundry. Wiggle Sports Group, owner of Chain Reaction Cycles and Nukeproof Bikes, who entered bankruptcy this fall has some bad outstanding balances.
Documents released by the UK government on January 3, 2024, show that among unpaid creditors, the brand still owes Australian Enduro Racer and Dow legend Sam Hill over £34,000. See part of the balance sheet below.
UK Company Information Service
Though Hill’s credit due is a small part of Wiggle’s outstanding debt, owing a racer is especially notable. It is never a good look when athletes can't be paid. £34,265 is the equivalent of 43,674 US Dollars. That is a solid chunk of change, especially in a sport that is not seen as incredibly lucrative.
Sam Hill is a legendary rider. After a storied downhill career, he made the switch to enduro full-time in 2017 and dominated that sport as well. Between the two disciplines, Hill has been at the pointy end of racing for over 15 years. Though Sam seems winding down his racing career, he is still a legend in the bike world.
Wiggle owes a couple of companies north of a million pounds and is over £67,000,000 in the hole. It is worth noting that as the company continues to operate and sell inventory under receivership, these numbers may not be up to date.
UK Company Information Service
Likely, the money that Sam is owed is part of a licensing deal with Nukeproof rather than a salary, as Sam has a line of products with the brand. A rider's salary would generally be on the books in the team budget rather brand's budget.
It has been a rough year for bike companies. Many are experiencing overstock as sales slowed after the COVID boom. The situation for British brands is especially dire due to heavy import costs after Brexit. The combination of these factors was disastrous for the British retail giant, and it plunged the company into bankruptcy in October.
Related: DJ Brandt Left Without A Sponsor As Investors Withdraw From Nukeproof Bikes
Though potential buyouts have been rumored, Wiggle is in dire straits. Though some easily laugh the situation off as large corporations squandering money, the negative effects of the Bankruptcy will trickle down to people in the bike industry all around the world.
BIKE reached out to Sam Hill for comment and is awaiting a response.
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