Members of two popular gyms in Aberdeen and Inverness have been told they won’t reopen after lockdown.
The retail stores attached to the gyms will remain open during August but they have launched closing down sales with products at least 40% off.
A letter sent to members in Inverness and Aberdeen blamed the Covid-19 pandemic for the move.
It said: “Following the onset of Covid-19, the future viability of the DW Sports business has become materially uncertain due to the enforced closure of both the gym portfolio and the Stores on March 20, 2020 and March 23, 2020 respectively.
Adding: “Your gym remains closed currently as part of the Scottish Government regulations surrounding the Covid 19 Pandemic and your account remains on freeze.
“It is our intention to work with the administrators to ensure a number of our sites remain operational in the long term as and when the restrictions are lifted by the Scottish Government, however, we regret to inform that your gym will not be reopening and will now remain closed for business as part of this process.”
Customers have been told their August fees will not be collected, and their membership cancelled at 8pm tomorrow.
Chief executive Martin Long said: “As a consequence of Covid-19, we found ourselves in a position where we were mandated by government to close down both our retail store portfolio and our gym chain in its entirety for a protracted period, leaving us with a high fixed-cost base and zero income.
“Like many other retail businesses, the consequences of this extremely challenging operating market have created inevitable profitability issues for DW Sports.
“The decision to appoint administrators has not been taken lightly but will give us the best chance to protect viable parts of the business, return them to profitability, and secure as many jobs as possible.
“It is a difficult model for any business to manage through without long-term damage, and with the limited support which we have been able to gain.
“Having exhausted all other available options for the business, we firmly believe that this process can be a platform to restructure the business and preserve many of our gyms for our members, and also protect the maximum number of jobs possible for our team members.”
