Inspire Health and Fitness Centre shut its doors last week after a decade in operation.
Inspire Trust chairman Ken Mair said the arrival of the traffic light system, on top of the lockdowns the country had experienced, meant the gym had to make an extremely difficult decision.
"At the end of the day, it's a decision based upon the economic situation due to Covid-19 over the past 18 months," Mair said.
"We want to acknowledge our members that have kept us going.
"They've been extremely loyal. Since the message has gone out there we've had really positive feedback around how it's been a social centre where people mix and talk about everything and anything."
One option Inspire looked at was using saliva tests every three to five days to keep people safe and protected without judgment, Mair said.
"Unfortunately, we couldn't quite get that across the line."
Mair said it had been a wonderful 10 years, with wonderful staff led by Mere Whanarere.
He wouldn't rule out the facility opening again at some point in the future.
"You're always optimistic that there's something around the corner, and Inspire is back up and doing it again.
"What's important for us of course is to ensure the members are looked after and those that have paid up are reimbursed.
"We also need to make sure our staff are supported during this very difficult time, and particularly over Christmas and New Year. We've been able to do that. It's the right thing to do, and it's been our priority."
Therapy businesses operating in the Inspire complex will continue.