Members of DW gym in Inverness told it will not reopen after coronavirus lockdown
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DW Sports, which has a site at Inverness Retail Park, went into administration yesterday, placing 1700 jobs at risk.
The retail store attached to the Inverness gym will remain open during August but has now launched a closing down sale.
In a letter gym members have now also been told that part of the business will also not be reopening.
"Following the onset of Covid-19, the future viability of the DW Sports business has become materially uncertain due to the enforced closure of both the gym portfolio and the stores on March 20, 2020 and March 23, 2020 respectively," they have been told.
"Your gym remains closed currently as part of the Scottish Government regulations surrounding the Covid-19 pandemic and your account remains on freeze.
"It is our intention to work with the administrators to ensure a number of our sites remain operational in the long term as and when the restrictions are lifted by the Scottish Government, however, we regret to inform that your gym will not be reopening and will now remain closed for business as part of this process."
Customers have been told their fees for August will not be collected.
Membership will be cancelled at 8pm tonight.
The company's chief executive, Martin Long, 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.
"Like many other retail businesses, the consequences of this extremely challenging operating market have created inevitable profitability issues for DW Sports.
"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.
"It is a difficult model for any business to manage through without long-term damage, and with the limited support which we have been able to gain.
"Having exhausted all other available options for the business, we firmly believe that this process can be a platform to restructure the business and preserve many of our gyms for our members, and also protect the maximum number of jobs possible for our team members."
Related article: DW Sports due to enter administration