Business

DW Sports activities chain cave in threatens 1,700 jobs

storeImage copyright
Getty Images

DW Sports, a gym and sports retailer, has said it will enter administration, putting 1,700 jobs at risk.

The company, founded by former Wigan Athletic owner Dave Whelan, operated 73 gyms and 75 stores across the UK.

Last month, it said it would shut 25 of its stores.

The company’s website has ceased trading. DW said it would work with administrators to save as many gyms as possible, while all of its shops will eventually close.

Fitness First and its 43 gyms, which are part of the same group of companies, will not be affected, the firm said.

“As a consequence of Covid-19, we found ourselves in a position where we were mandated by government to close down both our retail store portfolio and our gym chain in its entirety for a protracted period, leaving us with a high fixed-cost base and zero income,” chief executive Martin Long said.

“The decision to appoint administrators has not been taken lightly but will give us the best chance to protect viable parts of the business, return them to profitability, and secure as many jobs as possible.”

Administrators will be appointed on Monday who will run the business as the stores sell their remaining stock.

The company said 59 of its gyms in England and Northern Ireland have reopened, while 14 are in areas restricted by localised lockdowns and are closed.

Mr Long told the BBC in April that the firm’s income normally totals around £15m a month, but that it had fallen to zero, overnight, while it still had a £3m monthly wage bill.

Read More: https://www.kbcchannel.tv | For More Business Articles | Visit Our Facebook & Twitter @kbcchanneltv | Making The Invisible, Visible


Source link

READ  Rio Reopens Christ The Redeemer, Different Websites After Virus Closure

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker
%d bloggers like this: