GYMVMT prepares to file for bankruptcy, will close some gyms in Calgary and Edmonton

An Alberta fitness chain says it is restructuring in an attempt to stave off bankruptcy and will close some locations due to the impact of the coronavirus pandemic.

International Fitness Holdings Inc. — which operates 21 gyms in Calgary and Edmonton under the names GYMVMT, HER GYMVMT, Bankers Hall Club and ClubFit — filed notice of intention to file a proposal under the Bankruptcy and Insolvency Act on Friday.

“As you know, the pandemic has had a great impact on the fitness industry here in Alberta as we continue to incur the expenses of being open, however with significantly less income,” the company wrote in a statement posted to social media.

“Fitness providers like us are struggling to stay above water. Ultimately, we have two choices – hang up our sneakers and dissolve the company or fight to stay in business. We are choosing to fight, because we know you rely on our gyms. So, it is with hopeful hearts that we share our path forward with you today.”

The company said the filing will give it time to restructure and sell the business to a new owner and said it has signed an asset purchase agreement with a new shareholder group led by an Alberta private investment firm.

The company said it will permanently close some locations and lay off some staff members. The list of shuttered locations is expected to be finalized by the end of May when the sale is completed. 

Gyms have been largely closed in Alberta during the pandemic in order to slow the spread of COVID-19 transmission, with the exception of limited activities like one-on-one personal training. 

View original article here Source