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For those of you who use CRC or Wiggle you might be interested in what is going on behind the scenes since the merger/takeover. This letter was sent to the trade mag here in the UK;
Dear Mr Reid,
I turn to you as a respected journalist within the cycling industry, one whom I have followed for many years. It is high time someone took a stand and shed some light on just what is happening within our once beloved industry.
My concerns revolve around the take-over primarily of Wiggle by Bridgepoint and subsequently Chain Reaction Cycles. One can claim the take-over was of course a merger, Chris Watson having sold his company to Bridgepoint and subsequently accepting a place on the board of directors. However, that is far from the current reality. Having worked within CRC for many years and witnessed the growth year on year I simply must raise a voice for the many, those still here and those sadly gone because of the 'merger'.
You first broke the story of a proposed takeover in early 2016 and it was from the pages of BikeBiz that staff in CRC found out about the proposal. Management stated there was no truth to the story, it was merely shoddy journalism and informed us that the two business were NOT in discussions and a merger/taker over were NOT in the plans of either company. This untruth set the trend for what has been a two-year rollercoaster of lies and deceit.
When the staff were eventually told of the take-over we were then informed it would make absolutely no difference to the day to day running of CRC, all jobs would be safe. That was until the former CEO Stefan Barden announced a ‘town hall’ meeting and subsequently informed staff that all warehousing/stock (Whitepark - bikes/wheels being the exception) would be moved to Wolverhampton. This was a major shock as CRC could ship both locally (UK/Ireland) and internationally much more cost effectively than Wiggle. At no point during the initial take-over rumours or eventual take-over meetings did any of the Watsons make themselves available. Not one family member addressed staff, staff that had been unwavering in their loyalty for many years.
Over the next year (2017) warehouse redundancies were announced monthly. During that period a lot of non-warehouse staff raised concerns which lead to Wiggle/Bridgepoint sending a representative to address CRC staff. It was made clear that all other departments would have a long term future with the company, our wheel building facilities/skills were used as an example of how CRC would have an enduring footprint within Northern Ireland. Two months after the meetings it was confirmed all wheel builds would be re-located to Wolverhampton.
This was the pattern throughout 2017, department after department informed they no longer had a future with the company. At the end of 2017 the remaining staff/departments were moved to a new office in Mallusk. This led some to think there might be a bit of security, in the short term at least. However early in December our finance department were informed they would not be required after Christmas. Redundancies have continued each month of 2018.
In late January it was announced that shifts will be introduced to Customer Services (CRC), this has led to staff with family, single mothers/fathers and some of our older staff having their contacts terminated simply because they cannot work the proposed shift pattern. The shift pattern initially started as a 90-day consultation process but it was made clear to all staff that there was no alternative, either accept a new contact and work and shifts, if not your current contract would be terminated. We are watching good members of staff leave on a weekly basis and being replaced by short term contacted recruits of a much lesser standard. In effect, a disposable commodity. A shift change would be somewhat understandable if there was a legitimate business reason. We have been told it is to offer a world class service yet to due the ineptitude of management/directors we have seen company sales slump and subsequently contacts to Customer Service dwindle. Staff are currently sitting for five days a week with little to no work yet the proposed shift change would mean additional hours (10 hour days including weekends), more hours to do nothing.
And just this month it was announced that some CRC staff (B&M/customer service among this number) shall not be receiving a pay rise. It has been many years since we last received any sort of pay increase yet inflation rises year on year. It seems Bridgepoint are on a mission to decimateChain Reaction Cycles to the point where it can be justifiedin moving the remaining positions to the UK mainland.
https://singletrackmag.com/forum/topic/well-they-dont-seem-to-have-as-much-stock-in-as-they-used-to/
Disgruntled employee being disgruntled shocker.
totally unrelated, but does anyone know where the cheapest place for bike stuff is?
This is really sad.
I did notice that it looks like CRC being wound down.
What a shame for the staff.
Can't say I'm surprised. My initial thoughts on hearing that Wiggle were merging with CRC was "well that's ****ed then".
Shame to hear how complete incompetence, or maliciously profiteering the management of ChainReactionWiggle have been. Since I first started MTBing in the early 00's I used CRC and watched them grow into monolith they, until recently, were.
Whether subconsciously or just coincidentally since about the time the announcement was made I have barely used them. Their stock and pricing isn't what it used to be, which is probably a factor.
Sounds like the accounts and money men have finally got their talons into the mountainbike industry.
I hope the previous owners of CRC are aware and ashamed of what they must have known would happen.
Sadly, what this employee has experienced is pretty much par for the course when you get "mergers" of this type within a given industry. The reality is that Bridgepoint are a VC who are in it to make money on their investment. Not by building for the long-term, but by selling in 3-5 years for more than they paid.
The way that they do this is to bring two businesses together whereby they can reduce duplicated costs whilst retaining (hopefully from their point of view) the brands and the customer basis. From the moment it was announced it was apparent that one business would be decimated. Why have two warehouses, two customer service teams, two finance functions etc, when you can combine it all into one?
The lying etc is par for the course. The bods who do the meetings are either "Doing what they're told" on pain of their jobs or are invested in it themselves, but can't admit what is going to happen until they're ready to implement.
The reality of course (as the employee states) is that service levels drop and revenues can be hit. I've stopped using CRC as they've been terrible with the last couple of orders. Wiggle have always been cr@p ime
What goes around comes around.
Other than sucking for the employee's directly effected the combined implosion of CRC/Wiggle can only be good for the rest of the MTB retail market. Decimate those too large players and there is more pie for everyone else.
From the moment it was announced it was apparent that one business would be decimated
Bike24 next, but the VC stated they wanted to keep that as a separate business. If the VCs actually care about the online sports store side of things rather than just how to route £££££££££££££ and €€€€€€€€€€€€€€ in to their pockets, I would imagine they would like to keep actual warehouse and distribution centres on both sides of the Brexit/EU border.
It's not just CRC, Wiggle are severely screwing over Hotlines Distribution, owned by CRC by not paying invoices to allow 2018 stock to come into the country.
This is then directly affecting LBS who are suffering from V poor service from Hotlines, who are in a no win situation and getting shite thrown from both sides!!
I'm guessing the Manufacturers they distribute will be dumping Hotlines next.... 🙁
OK, if CRC and Wiggle both suck who should I use as my go-to online supplier now?
Tredz have been really useful for me (Yeah I know they are owned by Halfords). Their prices are good, they customer service has been really good (they have rapidly added several random items to the site for me to buy and then promptly sourced and delivered them ahead of expectations). And there is nearly always some kind of discount available.
Merlin ftw.
Within 10 replies. Bravo.
I thought Tredz where one of those that listed stuff as in stock when it wasn't, but still took your money while you waited for it. Or am I confusing them with Tweeks?
Merlin? Haven't used them for a while, but could be worth a try.
I use Merlin whenever I can now. Their service is better than CRC or Wiggle and they feel like a proper bike shop rather than a warehousing facility.
I thought Tredz where one of those that listed stuff as in stock when it wasn’t
They do order stuff in but stuff that was not in stock has been listed as such I think. Have always got quick updates saying that items will be ordered and when they will are expected (so not like they hide the fact its being ordered like some).
Cancelled my tredz order because was out of stock despite being listed so, then another delay. Now having same thing happening with Cyclestore.
Wiggle / CRC are huge but I imagine growth has flattened out so the profits are now being increased by 'operational efficiencies'.
Feel sorry for the original CRC employees.
Wiggle are crap now I've found. I use them when I need something urgently so pay extra for next day delivery. Turns out that next day delivery means 3 days later. Merlin, Pro Bike Kit and Sigma Sports are my current favourites if I need fast delivery and great service.
To be honest didn't think it was that bad, I still order quite a lot from CRC.
Service doesn't seem to be impacted in anyway.
Or am I the only one ordering from them?
I use Evans, Rutland Cycles, Freeborn, Merlin and Triton Cycles.
I think Wiggle may have got their delivery options mixed up. I ordered Sunday night with standard delivery, which was expected on Thursday, but it was delivered on Monday. Glad I didn't shell out for next day delivery...
Used to do most of my regular bike bit shopping at either CRC or Merlin from the mid 90's until about 6 or 7 years ago when CRC's prices stopped being such a bargain.
These days I'll go to Merlin 1st, then Tweeks if I'm after groupset stuff as I've always had great service from both of them and Tweeks is 'relatively' local to me.(20 miles or so)
I was chatting to the owner of my closest LBS before Christmas and he told me that the VC owning Wiggle & CRC use them to write-off tax against, which is why their prices are so cheap (against other UK retail outlets, anyway). Don't know how true it is but it certainly fits in with the pattern described above.
So you say they're not cheap but the say they are cheap.
No more haribo in the wiggle orders 🙁
I was chatting to the owner of my closest LBS before Christmas and he told me that the VC owning Wiggle & CRC use them to write-off tax against, which is why their prices are so cheap (against other UK retail outlets, anyway). Don’t know how true it is but it certainly fits in with the pattern described above.
If there’s anyone I trust to know the tax arrangements of venture capitalists, it’s the local bike shop owner...
I get the feeling that Wiggle might also be struggling. They don't seem to have a good selection of gear in stock.
Is it just me that thinks Merlin seems to be concentrating on road with mtb stuff falling by the wayside?
CRC defo not so good where as I have had good service from Tredz recently albeit not expecting next day o.r anything.
After a spell in the trade where I did the day to day heavy lifting on supplying and managing both CRC and Wiggle accounts (up until a few years ago)...
CRC were a bloody pleasure to deal with, a genuine pleasure.
Wiggle were a nightmare.
I cant see anything involving moving to Wiggles management and supply chain as being beneficial for anyone.
Must admit, that on a simple Google search for an item, many other options at as good, or better price come up now.
Recently ordered from Triton and Sigma with zero issues.
I do take a punt on Tredz or Tweeks if it's an unimportant, non time critical part.
Wiggle are shit now. Recently ordered a bike for my 7 year old. Paid for it and got an estimated delivery time of 10 days. Bit long but fair enough. Day before it’s due I’ve heard nothing so log in to find the order had been cancelled that day. I’d had no communication about this at all. Emailed them and predictably it turns out it wasn’t actually in stock. Was gutted telling my daughter. Pricks.
^^
As a Dad myself (though he is 20 now) that is a crappy position for a company to put you in.
Also noticed poor stock in both Wiggle and CRC and has resulted in me getting good items/prices elsewhere; there is life outside these two and hopefully many other smaller/local suppliers will benefit.