An Alberta health chain says it’s restructuring in an try and stave off chapter and can shut some places because of the affect of the coronavirus pandemic.
Worldwide Health Holdings Inc. — which operates 21 gyms in Calgary and Edmonton underneath the names GYMVMT, HER GYMVMT, Bankers Corridor Membership and ClubFit — filed discover of intention to file a proposal underneath the Chapter and Insolvency Act on Friday.
“As you understand, the pandemic has had an incredible affect on the health trade right here in Alberta as we proceed to incur the bills of being open, nevertheless with considerably much less earnings,” the corporate wrote in an announcement posted to social media.
“Health suppliers like us are struggling to remain above water. Finally, we have now two decisions – hold up our sneakers and dissolve the corporate or combat to remain in enterprise. We’re selecting to combat, as a result of we all know you depend on our gyms. So, it’s with hopeful hearts that we share our path ahead with you in the present day.”
The corporate mentioned the submitting will give it time to restructure and promote the enterprise to a brand new proprietor and mentioned it has signed an asset buy settlement with a brand new shareholder group led by an Alberta non-public funding agency.
The corporate mentioned it is going to completely shut some places and lay off some workers members. The checklist of shuttered places is predicted to be finalized by the top of Could when the sale is accomplished.
Gyms have been largely closed in Alberta through the pandemic as a way to gradual the unfold of COVID-19 transmission, apart from restricted actions like one-on-one private coaching.