An Alberta fitness chain says it is restructuring and plans to close some locations due to the impact of COVID-19.
On Friday, International Fitness Holdings Inc. filed a notice of intention to file a proposal pursuant to the Bankruptcy and Insolvency Act.
The move allows “time to restructure and sell the business to a new owner under court protection,” GYMVMT said in a Facebook post on Tuesday.
International Fitness Holdings Inc. operates 21 gyms in Calgary and Edmonton under the names GYMVMT, HER GYMVMT, Bankers Hall Club and ClubFit.
In the Facebook post, the company said it has signed an asset purchase agreement with a new shareholder group.
“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.”
The company says once the process is complete, the fitness clubs can continue to operate as a new corporate entity.
International Fitness Holdings Inc. is now in the final stages of selling the business to a new shareholder group led by an Alberta-based private investment firm, it explained on its website.
The company says by filing a notice of intention, “we are allowed time to restructure the business and complete a transaction with a buyer under court protection, so we can keep serving Albertans.”
As part of this process, the company says it will need to close some locations permanently and layoff staff in the weeks ahead.
There are no changes to gym memberships or personal training at this time, according to the social media post.
“Once we share information on the clubs that will be closing, we will work closely with those members to answer any questions they may have.”
Decisions on what locations will be closed and which will remain open will likely be made by the end of May, the company said.
On April 6, the provincial government announced that Alberta would be heading back to Step 1.
That meant indoor group fitness activities are no longer permitted and only household or individual training with a trainer is allowed.