Model now unsustainable, founder says. Photo / supplied
An Auckland gym is shutting on Friday, its founder blaming the pandemic for such significant revenue and membership drops that operations became unsustainable.
But he said the decision to shut wasn't taken lightly.
Peter Rana,
founder of BodyTech Gym, located in Grafton, said the tough decision had been made to shut at the end of this week.
"The global pandemic has had a significant impact on businesses like ours across New Zealand and around the world. The membership and revenue have dropped since the beginning of the pandemic to an unsustainable level," Rana told members.
Companies Office records show the business was founded more than two decades ago in 2000.
Despite making changes during the pandemic to cut costs, the business could no longer continue.
It had to maintain the service levels members expected, he said.
The directors did not anticipate any improvement to BodyTech's prospects in the foreseeable future and decided that they have no option but to close, he said.
Membership subscription payments will be stopped from today, Rana told members.
"The next few days are complimentary for all members. It is an opportunity to come in to work out and say farewell to the BodyTech team," he said.
All membership subscriptions paid in advance beyond today, any prepaid unused personal training sessions or other unused pre-paid services will be refunded.
"We ask for understanding and patience at this time, as it may take us several weeks to process all refunds and we will endeavour to get through them in a timely manner," Rana said.
He thanked loyal gym-goers.
The Herald has reported how other gyms have suffered as well.
Gyms have been places of Covid contact and others have shut too.
Snap Fitness in Browns Bay closed for cleaning for a few days two years ago, amid the early impact of Covid-19 in New Zealand.