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WiggleCRC: 300 Chain Reaction jobs face axe in Northern Ireland

Merged company announced it will move the Chain Reaction Cycles jobs to Wolverhampton by late summer 2017 in a bid to improve delivery times

Concerns have been raised following WiggleCRC’s announcement it will move 300 jobs from Northern Ireland to England in a bid to speed up delivery times.

Wiggle, whose UK turnover exceeded £100m last year, acquired Chain Reaction Cycles in February. It says it will keep both brands, and their websites, but in order to remain competitive it will move a significant number of Chain Reaction Cycles’ warehouse jobs to Wolverhampton in late summer 2017.

Concerns have been raised over the loss of jobs from what has been described as one of Northern Ireland’s most iconic businesses, in a move Unite’s regional officer called “corporate asset stripping”.

Wiggle’s 2015 turnover tops £100 million in the UK

WiggleCRC says it remains committed to Northern Ireland but cites later order cut-off dates and the importance of rapid delivery to customers for the move, following a review of the two companies’ operations.

A statement released by WiggleCRC said: “As part of the review we are aware that delivery, including later order cut-offs and speed, is becoming increasingly important for customers and a highly competitive area for all etailers.”

It said to remain competitive in the UK and global markets the majority of distribution will be through a Wolverhampton warehouse facility, with the potential loss of 152 direct employees and 161 agency workers.

 “This necessary step, will require the relocation of significant warehouse activities currently in Doagh, Carrickfergus and Ballyclare," the statement said. "As part of this proposal, bikes and frames, including bike assembly handling activities and our wheel build operation would remain in Ballyclare.”

> Wiggle and Chain Reaction merger cleared

“WiggleCRC will retain a significant staff and management presence in Northern Ireland, with at least 275 unaffected employees forming a vital part of our ambitious growth plans.”

“We recognise that these are uncertain times for affected employees and can confirm they will be treated fairly and in line with our values.

“We are fully committed to minimising the impact of these proposals and providing all the necessary support to affected employees in any way we can during and after this process. That includes working with the Department of the Economy’s Careers Service to help provide affected employees with advice and guidance on new employment and training opportunities.”

Ulster Unionist Assembly member, Steve Aiken, told Belfast Live: “The story of Chain Reaction Cycles has, up to now, been one of continual expansion and success.

“From its early days starting in Ballynure, its online cycle business has developed into a global success, and it has become one of Northern Ireland’s most iconic businesses.

“This will also significantly affect the Royal Mail as Chain Reaction have been one of their biggest customers.”

Unite Regional Officer, Davy Thompson, said: “This appears to be a clear case of corporate asset-stripping. Wiggle acquired its competitor, the successful Northern Ireland distribution and retail business Chain Reaction cycles, in February of this year and by October wants to close most of its Northern Ireland operations.

“Management gathered the warehouse union reps together this afternoon to inform them all Northern Ireland operations, with the exception of the White Park mechanical repair facility at which approximately twenty workers are based, will be closed by Summer 2017.

“This decision threatens redundancy for more than 150 full-time and 160 agency workers and is completely indefensible.

“Earlier in the year, Unite reps raised concerns with political leaders that Wiggle’s acquisition might be driven by a desire to buy a competitors’ order-book with little long-term commitment to its workforce. We were given assurances that this was not the case."

 

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30 comments

Avatar
mostly | 7 years ago
0 likes

Same here with some raceblades I ordered. Zero hours Haribo.

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chrismayoh | 7 years ago
0 likes

Just received an order from Wiggle . . . . . . no Haribo packet . . . . . . .

 

Is this how it's going to be from now on???

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alexb | 7 years ago
1 like

Wiggle used to be noth cheap and fast to deliver. They are now amongst the pricier suppliers and pretty slow to deliver. CRC always used to be super quick, so where I could I have always ordered from them.

Ordered some tyres from Merlin recently and they arrived the following day with free postage. They're definitely getting more trade from me.

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Blackhound | 7 years ago
1 like

Always inevitable once merger went through. My main surprise is that I had no idea just how big the CRC operation is/was. 300 jobs!

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LeighNichol | 7 years ago
0 likes

In my experience, Chain Reaction are without fail always quicker at delivery than Wiggle. Also, we all love getting a delivery of cycling goodies, but the world isn't going to end if you have to wait a couple of days. As a customer of both, I'd much rather wait especially if it means people keeping their income, don't use the excuse of customers demands to get rid of people. Be honest about what it is, asset stripping. I'm not using them anymore.

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LastBoyScout | 7 years ago
0 likes

I haven't followed the dealings in any detail, but I was surprised the competitions commission didn't get involved in this one.

I buy from both (and others), never really thought much about delivery times.

I do support my local bike shops as much as I can, but the sad fact is that they can't carry the range that's available online, especially in things like shoes.

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fukawitribe replied to LastBoyScout | 7 years ago
1 like

LastBoyScout wrote:

I haven't followed the dealings in any detail, but I was surprised the competitions commission didn't get involved in this one.

The Competition and Markets Authority passed it. The behaviour since still sucks though, strangely enough just what the Unite reps and others were saying might happen but were assured would not...

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kitkat | 7 years ago
0 likes

Merlin will be next in Wiggle's sights... just sayin'

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nniff | 7 years ago
1 like

I have an active policy of supporting my LBS, within reason, and they both know and understand that.  Thus, the groupset for my new bike came from Wiggle, but everythng else came from the LBS and they put it all together.  In fact I support three - Head for the Hills, Corridori and Sigma Sport.  I must spend to much on bikes and stuff. 

The one LBS that I won't support is #neverEvans  for reasons that will be apparent to most.

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ibr17xvii | 7 years ago
0 likes

Always liked both but probably used Wiggle more just cos of their better price match scheme.

 

Having said that since Wiggle raised their free P&P threshold to £20 I've found myself looking for alternatives.

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dottigirl | 7 years ago
0 likes

Hope someone from Wiggle is reading all this and cringing...

(I'd already stopped using them years ago due to the calendar debacle, and that their 'free' delivery was so damn slow. Much preferred CRC. Damn.)

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Canyon48 | 7 years ago
0 likes

CRC deliveries have been consistently quicker than Wiggle for me (SW UK). 

Annoying that Wiggle  changed their free delivery over £10 to free delivery over £20 too.

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Danger Dicko | 7 years ago
1 like

I was going to buy some mud guards from Wiggle.

I'll now get them Saturday morning from my LBS.

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ibr17xvii replied to Danger Dicko | 7 years ago
2 likes

Danger Dicko wrote:

I was going to buy some mud guards from Wiggle.

I'll now get them Saturday morning from my LBS.

 

The issue with that is they'll probably be more expensive & therein lies the problem.

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gazzaputt | 7 years ago
1 like

For me I won't buy from either again.

Cannot abide these asset stripping companies. Just profit, profit,profit. Aren't bothered that their greed will have huge impact on the life of fellow human beings. What lives to these management people lead when it revolves around being seen to successful in their little world?

Yes I have experienced the same situation and leaves a real anger and bitterness towards these management types.

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Stef Marazzi | 7 years ago
0 likes

+1 for CRC always having faster delivery. However they need to take a leaf out of Merlin Cycles book, who are way quicker than both.

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PaulBox | 7 years ago
1 like

Personal dilemna for me at the moment, have put many £'s the way of both Wiggle & CRC over the years and now my LBS is closing down.

I feel really bad about it, I know that it's not just me, but it's going to be a huge void in our local cycling scene.

I MUST STOP LOOKING AT THE BARGAINS ON THE INTERNET!!!

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arfa replied to PaulBox | 7 years ago
0 likes

PaulBox wrote:

Personal dilemna for me at the moment, have put many £'s the way of both Wiggle & CRC over the years and now my LBS is closing down.

I feel really bad about it, I know that it's not just me, but it's going to be a huge void in our local cycling scene.

I MUST STOP LOOKING AT THE BARGAINS ON THE INTERNET!!!

I am as guilty as you on this one. I have always tried to give as much business as possible to the LBS but sometimes the bargains are far too good to avoid.  The problem is consumers chase down prices and suppliers chase down costs at a far greater rate, hence the job losses in this news item.

Sadly my local LBS suddenly closed down a few weeks ago after I believe continuous operation for over a century. One of the primary reasons given was business rates, requiring them to sell £2000 of bikes a week just to see off this cost alone.  The sad destruction and homogenisation of our "Mchigh streets" will continue without a change in consumer approach and tax reform to level the playing field between online and high street.  It is a great shame there isn't political will to address this before it is too late.

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nowasps replied to arfa | 7 years ago
0 likes

arfa wrote:

It is a great shame there isn't political will to address this before it is too late.

 

Even if there were, by the time it came to fruition it would probably be out-dated and no longer fit for purpose. Legislation can't keep up with the rate of change these days.

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only1redders | 7 years ago
4 likes

This was entirely predictable, following the takeover. For anyone crying 'Asset Stripping' though, it's worthwhile understanding what the term actually means

"The practice of taking over a company in financial difficulties and selling each of its assets separately at a profit without regard for the company's future."

MG Rover was an asset strip, this is consolidation

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Yorky-M replied to only1redders | 7 years ago
0 likes

only1redders wrote:

This was entirely predictable, following the takeover. For anyone crying 'Asset Stripping' though, it's worthwhile understanding what the term actually means

"The practice of taking over a company in financial difficulties and selling each of its assets separately at a profit without regard for the company's future."

MG Rover was an asset strip, this is consolidation

Rubbish, read before you write.   CRC was not in financial difficulity! 

Poor decision from the owners. If they sold- as a going concern to a third party, it was a super company and they would have got their deserved payday day and out. Their decision to sell to Wiggle, killed these irish jobs and mortgages . Wiggles new warehouse was built in 2015 with room for 70% growth..or CRC absorption. 550 jobs will evenutally go. 

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nowasps replied to Yorky-M | 7 years ago
8 likes

mylesrants wrote:

only1redders wrote:

This was entirely predictable, following the takeover. For anyone crying 'Asset Stripping' though, it's worthwhile understanding what the term actually means

"The practice of taking over a company in financial difficulties and selling each of its assets separately at a profit without regard for the company's future."

MG Rover was an asset strip, this is consolidation

Rubbish, read before you write.   CRC was not in financial difficulity! 

Poor decision from the owners. If they sold- as a going concern to a third party, it was a super company and they would have got their deserved payday day and out. Their decision to sell to Wiggle, killed these irish jobs and mortgages . Wiggles new warehouse was built in 2015 with room for 70% growth..or CRC absorption. 550 jobs will evenutally go. 

He didn't say it was. You might want to take your own advice.

 

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MarkiMark | 7 years ago
2 likes

This is normal corporate speak, and it stinks. Surely as the very customers they are trying to do this for we can put some pressure on? 

I use both, and honestly am perfectly happy with the service from both. I'm not sure I'd benefit hugely from being able to get next day delivery if ordering at 5pm rather than 3pm. If my need is that desperate then Ill usually nip to Sigma Sport or Evans anyway.

How does moving to mainland Englandshire for 'faster delivery' work for their customers in Ireland (north and south)?

Online petition anyone?

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Jimmy Ray Will | 7 years ago
0 likes

Well this is exactly what it is... 

I can only see this as a step away from being the consumer champion towards the role of global corporate giant.... maybe they could start selling specialized!?

I resent Wiggles delivery timeframes and have done for a while now. To me its a cynical way to increase revenue through next day delivery upgrades etc.

So basically, I try to steer clear as much as possible. 

I hope the industry as a whole, especially LBS's, recognise and seize this latest move as an opportunity to grab market share. 

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boardmanrider | 7 years ago
1 like

Everybody beat me to it! CRC is much faster that Wiggle. Ok, granted I do live in Dublin overall CRC service is much better as well.

Losing 300 job is bad but Royal Mail are set to loose out as well. I met somebody this year who lives near CRC and he said that by far that they provide the most post for Royal Mail.

I'll also say, and I will be seaking clarification from both CRC and Wiggle: Wiggle will have NO right to your information stored with CRC. This will probably consititute a data protection issue. Wiggle will not be able to email you with your express permission. CRC can email you to say goodbye, thansk for the business etc but anything else will go against your privacy. I doubt, when you created your CRC account there was clause in their T&Cs about mergers etc. 

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nniff | 7 years ago
3 likes

Can't say I'd ever had a problem with CRC being noticeably slower than Wiggle, and I did like sending business to Northern Ireland.  Seems a shame to me

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dottigirl | 7 years ago
2 likes

I was about to say the same - CRC are usually faster. Shit excuse for asset stripping consolidation. Really poor, Wiggle.

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tritecommentbot | 7 years ago
2 likes

Just about to say the same thing!

 

I have regularly ordered on the same hour from CRC and Wiggle in the hope that both orders will arrive on the same day, and CRC always, without fail, will arrive a day earlier. Wiggle was way quicker years ago. Maybe that's the problem. They know their delivery times have slipped? As a rule, CRC two days for delivery. Wiggle 3 days. 

Merlins is my fav and maybe Sigma Sport? Forget now. There's a couple of other big players who're super quick. Order mid day and get it next day even on free delivery. Love that. 

 

Have to admit though, started using Evans a lot recently. Just really handy to have them price match then collect in store at lunch either same day or day later so.. 

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jmaccelari | 7 years ago
6 likes

Weird. I often find CRC is faster than Wiggle...

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Dnnnnnn replied to jmaccelari | 7 years ago
0 likes

jmaccelari wrote:

Weird. I often find CRC is faster than Wiggle...

Their reasons are unlikely to be honest - it's much more likely to be just about making more money.

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