The parent company of wigglecrc, Vitus Bikes and Nukeproof took another hit this week after it was revealed it had lost €150m of financial support.

In a statement to investors posted on the website, German sports e-commerce retail giant Signa Sports United NV (not to be confused with Sigma Sports), which is behind more than 80 online stores, including Wiggle and Chain Reaction Cycles, received a €150 unconditional stock commitment letter from its own parent company, Signa Holding. The company announced that it had received a notice of termination.gmbh.

This statement explains that the agreement was originally drawn up in 2023/6/26 and included an unconditional commitment from Cigna Holding to support the "operational financing needs" of its subsidiaries.

This commitment is set to be implemented between 2023/9/1 and 2025/9/30, essentially ensuring ongoing concern for that period - operational capacity.

However, after only 700 million euros of that commitment was spent, Cigna Holding pulled the plug and left 1430 million euros undrawn.

This statement provides no clarity or explanation as to how, or even if, Cigna Sports United will continue its business without funding.

Unsurprisingly, Cigna Sports United considers the move "unjustified" and adds that it plans to "take appropriate legal action" on behalf of the interests of shareholders, creditors and employees.

Although not confirmed, the move appears to be related to an announcement from Signa Sport United last week that revealed "profitability challenges" and planned to "accelerate strategic restructuring and restructuring programs", including "closing or shrinking nonperforming assets."It also announced it was set to delist from the New York Stock Exchange.

In particular, the news also came at the same time that Cigna Holding announced it was offloading German sports retailer SportScheck. According to a report from Morningstar, the 75-year-old brand was sold to British retail conglomerate Frasers Group PLC, the parent company of House of Fraser and Sports Direct.