BC’s biggest chain of fitness clubs has joined the growing list of businesses unable to survive the “medically-induced coma” which the COVID-19 pandemic has forced on the economy. SNFW Fitness B.C. Ltd., which brought together the Fitness World and Steve Nash Sports fitness clubs, and also operated several “UFC Gym” facilities, initiated insolvency proceedings under the Bankruptcy and Insolvency Act on April 3, 2020.
The provincial health order in early March restricting gatherings of 50 or more persons caused the entire shutdown of the chain, including mass layoffs which shrunk staffing from around 1,300 employees to six.
SNFW recently obtained an extension in its insolvency proceedings and will seek buyers for the chain and its assets. The insolvency proceedings will prevent any action by creditors while this sales process is pursued. It is hoped that such a sale will result in a better return for creditors than an out-and-out bankruptcy of the business.
The current pandemic is forcing even viable businesses into circumstances which threaten their existence. Experienced insolvency advice is critical as business decision-makers face difficult choices.
If your business is in crisis contact us to schedule a meeting with one of our lawyers. We will explain your options and help you move forward.