Steve Nash Fitness World in Canada may be going bankrupt because of COVID-19
As individuals, businesses and entire economies around the world feel the devastating financial impacts of COVID-19, some are assessing whether or not they'll be able to survive another few months in our current reality.
About 10 per cent of restaurants in Canada have already been forced to shutter permanently because of the novel virus, with another 18 per cent preparing to have to close down for good if things don't change in the next month.
Though the hospitality industry may be getting hit the hardest, the effects are certainly being felt across the board — places like Steve Nash Fitness World, for example, appear to be going bankrupt amid the global pandemic.
To the communities we serve and our valued members, As many of you know, the recent decision to temporarily close our clubs is due to the ongoing COVID-19 global pandemic. We made the decision with our members’ health and our community’s well-being in mind, with the expectation to reopen our doors to all of you when it’s safe to do so. As part of this tough decision, we have also had to make the difficult move to let go of our valued team members as we transition through an organizational restructuring during these tough and unprecedented times. We know that many of you have questions about your membership, your personal training sessions, and when you can return to our clubs. As part of our temporary closure, all memberships have been frozen at no expense to you and you’ll be able to use your personal training sessions when we reopen. We continue to monitor the situation closely and will update you as more information becomes available. We look forward to making fitness the best part of your day soon - in the meantime, we encourage you to visit our website and explore our online resources to help you stay active while spending time at home. In health, SNFC Management
The eponymous chain of gyms was the brainchild of NBA player Steve Nash, who is from Victoria, B.C., though he himself has not had any part in the operations of the facilities since a falling out with his former business partners in 2016.
The brand currently has 24 gyms across B.C. under the banners Steve Nash Fitness World, Sports Club, UFC Gym and Crunch Fitness.
Like many businesses, the clubs closed their doors to the public for two weeks starting March 17 due to the pandemic, though they vowed to continue paying staff. Member payments and services were also temporarily frozen for the time being.
SNFW then released a second statement on social media a week later, which said that the brand would unfortunately be terminating all of its staff while it went through "an organizational restructuring." This was ostensibly after the chain realized it would not be able to reopen anywhere near March 31, as was initially planned, thanks to the outbreak in Canada.
There goes my gym... apparently for good (?) after telling customers their memberships would be "stalled" during the pandemic. Now filing for bankruptcy. https://t.co/zlGnH9DbGf— Lynda Steele 🎙 (@steeletalk) March 29, 2020
Though its social media presence still seems to suggest the company plans to bounce back, SNFW allegedly sent a letter to laid off employees stating that "the indefinite closure of our clubs… due to the COVID-19 pandemic has resulted in many difficult decisions," CTV News reports.
"While the company has explored all options to continue operations and protect our team members continued employment, we do not see a way forward at this time" — seemingly a glaring admission that the brand is done for.
Inside sources have also anonymously told other outlets, like Global News, that the business is actually already in the process of filing for bankruptcy, meaning that former patrons of Steve Nash World Fitness almost certainly won't be seeing their gym resume operations in the future.
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