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UK fitness retailer and gym group DW Sports warned it was on the brink of administration, with 1,700 jobs at risk, after the coronavirus lockdown wiped out its income.
The company, which is owned by former footballer Dave Whelan, said on Monday that it was hoping to save “as many gyms as possible” and protect jobs — but that its 75 stores across the UK would permanently close.
Martin Long, the company’s chief executive, said the forced closure of the group’s stores and gym chain during lockdown had left it with “a high fixed-cost base and zero income”.
The company said 80 per cent of its 73 gyms were now operating, with 14 still closed because of government restrictions.
DW became the UK’s second-largest gym operator when it acquired rival Fitness First in 2016. The company stressed that the Fitness First brand would not be affected by the insolvency proceedings.
Wigan-based DW was formed in 2009 when Mr Whelan bought just over 50 fitness clubs and merged them with JJB Sports, a retail company he had previously built up.
The UK’s £5.5bn fitness industry was growing rapidly before the pandemic and ensuing lockdowns ground it to a halt. The difficulty of implementing social distancing rules and the rise of home workouts has put many operators under pressure.
Mr Whelan also owned Wigan Athletic until two years ago. Last week the English football club fell into insolvency. The club’s administrators said the collapse stemmed from a failed promise to invest by new owners, rather than a hit from the pandemic.
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