A letter sent to members by owner Rachael Walker blamed the liquidation on Friday on financial difficulties due to rent and purchase payments to the Carlyle St gym's landlord and former owner of the business, Rod Langdon.
"Everything that can be done to help this club survive and eventually prosper has been done," the letter said.
"However, the rent and asking price of this business has completely crippled all attempts to continue. Based on independent advice sought by management there is absolutely no option other than to liquidate.
"This is an incredibly sad day for Sparta Health and Fitness Ltd and for all staff and members that feel like Sparta is our second home. Please rest assured that your payments will be no longer deducted, effective immediately."
In a statement to Hawke's Bay Today, Miss Walker said, "This was my last resort and I'm completely devastated as I put everything I could into making Sparta a success.
"The staff and members were like my family and I loved being part of making positive changes in people's lives."
She said she was not aware of the true state of the business when she took over 15 months ago.
But Mr Langdon said she had bought the business together with his accountant, "who had full disclosure of the books".
"When I sold the business it had about 1100 members."
Miss Walker said, "I've been trying to negotiate with the landlord to lower the rent down from over $12,000 a month, which I had to meet on top of all outgoings, to no avail. It was impossible to carry on with such huge expenses.
"I tried everything from getting an accountants report sent to the landlord, I gave him half a dozen proposals, had meetings with him, I made huge cuts to my costs, even took up doing the cleaning myself. But no progress was made on reducing the rent he was charging.
"A month ago I contacted City Council Economic Development adviser Ron Massey, asking him to help me with negotiating the rent with the landlord so that we could make some progress. Unfortunately he was not interested in meeting with Ron and I."
Mr Langdon said he planned to work with the liquidator to arrange for a new gym operator, with the doors opening at 5.30am tomorrow.
All existing membership obligations would be honoured.
Liquidator Ken Oliver was unavailable for comment.
Greeting Sparta members tomorrow will be Jonathan Hall.
The all-round sportsman and personal trainer, based at The Workout Studio in Hastings, said he was looking forward to greeting members and would be managing the gym with a view to buying it.
"My goal has always been to own my own gym," he said.
Sparta staff were asked to contact him to discuss future employment opportunities.
