Nergie fitness centre in navan to cease trading

The Énergie Fitness Centre at Johnstown, Navan, is to cease trading after the High Court was petitioned to appoint an interim examiner to eight gyms today.

The court has appointed Anthony Weldon of Kieran Ryan & Co as interim examiner, providing protection for the eight clubs during the period of examinership after the petition was filed by Prime Fitness Ltd, whose centres trade under Énergie Fitness Ireland.

A statement on behalf of the group said that as the clubs in Navan and Newbridge, Co Kildare, are trading at a significant loss and all options to improve them have been exhausted, it is envisaged that the two clubs concerned will cease trading. 

'The decision is regrettable, but unfortunately necessary to secure wider employment in the company. The clubs employ 34 people under varying terms and conditions, and it is hoped that these employees will be accommodated in other clubs,' the statement said.

The directors said they would also hope to be able to facilitate members in Navan and Newbridge who have paid their memberships in advance by allowing them to utilise one of the company’s other clubs for the remainder of their membership.

The eight clubs under review are part of the former gym and fitness business of Jackie Skelly, which was acquired out of an examination process in 2010 and are located in Ballsbridge, Clarendon Street, Drogheda, Rathfarnham, Swords, Newbridge, Ashbourne and Navan. 

Prime Fitness Ltd said that the restructure of the former Jackie Skelly business was not successful due to further unexpected declines in income levels as the recent recession deepened. 

Over the past five years, income from the fitness sector has declined. When acquired in 2010, turnover by the eight clubs was approximately €13m.  Despite extensive remedial action taken by management, turnover fell to €7.3m for the calendar year 2014, the statement added.  

'Significant financial support has been injected by the shareholder of Prime Fitness Ltd into the clubs to ensure that major financial obligations such as property leases and bank debt were met. This is a situation that can no longer be sustained, and the decision was taken to petition the High Court for Court protection today,' it added. 

The purpose of the examinership is to restructure the clubs to put them on a profitable and sustainable footing. The directors and management said they were determined to keep six of company’s eight clubs open as part of the examinership process, if landlords enter negotiations.