Is Wiggle in some sort of trouble?

I've just returned some winter gloves (last week) with no hassles and very prompt service.

I imagine they might quibble if they think something's been used in anger rather than just tried on. Never had any problems returning clothes myself.

Sent back a Sugoi jersey just recently due to it being crap quality and a poor fit. No quibbles from Wiggle on that occasion.

Odd, ordered a pair of swimming costumes for the SO, both tried on and both got sent back refunded with no questions?

under the distance selling regulations you have a duty of care as a consumer to take reasonable care of goods but a retailer can't insist that a product is returned new and unopened. That's a breach of the regulations. it doesn't matter what their 'policy' is

I had exactly the same set of circumstances with a pair of pricey Gore bibs. They eventually did go back but not without a struggle.
The struggle I had with Wiggle revolved around the wash/not wash returned clothing. One guy said wash it, the other said you can't have your cash back because you've washed it.
I still use Wiggle but nowhere as much as I did.
They have to be careful as a faceless organisation as I've heard lots of similar complaints.

Recently I've had extremely good customer service from Chain Reaction in a situation that could quite reasonably of gone the other way.
Also exceptional no questions asked service on the return of a cracked Ksyrium Elite to Merlin Cycles.

This sounds strange, my reason for saying so is that Wiggle donate all returned items to a bike jumble in Tetbury. This includes clothes that had been sent back so they obviously used to refund/replace.

On a side note it's worth a visit, I Paid £35 for a Garmin cadence sensor and a K edge mount.

I've always found them to be touch & go. I've not done any returns with them but sometimes when I've ordered "in stock" items I've had to mail them a few weeks later asking whats going on only to be told "we're waiting for it to come in from the supplier, we don't have a timescale".

In the same breath, though, I've had people apologise profusely for the same or similar problems and issue me a full refund and some vouchers by way of apology!

I'd keep arguing your point (in a friendly way of course!) - I'd say you've probably just got a grumpybum at the other end. As long as the hats got all it's labels etc on and it's in exactly the same condition as it was when you opened the package then it should be fine. Double check their returns policy on hats & accessories too it might be a case of that's just what they do.