NZONE Skydive plans to close its Rotorua operation and is in discussions with a potential buyer.
The Queenstown-based company opened the Rotorua operation in 2003 in a bid to expand its operation to the North Island.
NZONE business development manager Derek Melnick said the operation was an existing going concern and presented all indications of being a good fit for the NZONE Skydive brand to expand north.
The Rotorua operation had successfully been running against some pretty challenging trading conditions but still managed to deliver modest growth over the years in Rotorua.
However, Mr Melnick said accessibility to Rotorua, the high cost of domestic air travel between Rotorua and other centres and competing against cultural and geothermal tourism products and other adventure activities were factors that had impacted on the Rotorua operation.