Sky News understands that Halfords, which has a market capitalisation of just over £500m, has registered its interest in a bid for Wiggle CRC, which fell into administration last month.

Halfords will be pitted against Frasers Group, the owner of Sports Direct and Evans Cycles, which is also among the bidders.

Next is also said to have been considering a bid, although a spokesman for the company denied on Thursday that it was interested.

Halfords has already stepped in to honour warranties on products bought from Wiggle and Chain Reaction.

The London-listed company's chief executive, Graham Stapleton, said: "We don't want anyone to be left with worthless parts or accessories through no fault of their own, or to find they have paid in advance for a service that they can no longer benefit from.

"The cycling market is fundamentally sound and is ahead of where it was in 2019, but the extraordinary distortion caused by the pandemic and the volatility of the past three years has resulted in the closure of many independent bike shops, and now we are seeing large online retailers calling time too."

The collapsed company, which includes Wiggle, Chain Reaction Cycles and the Vitus and Nukeproof cycling brands, became insolvent after losing the financial support of parent company Signa Sports United.

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Wiggle CRC employs about 450 people, and is continuing to trade during the administration process.

FRP Advisory is handling the insolvency process.

Halfords declined to comment on its interest in an acquisition of Wiggle CRC.