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14
Jan
Administrators give statement on Harrogate gym
The joint liquidators of Coach Gyms Ltd have said the Harrogate site was the “only profitable part of the business”.
The company, which was founded in 2019, operated gyms at Hornbeam Park in Harrogate, as well as in Leeds and London.
But the Leeds and London sites have closed, and the company has been put into administration.
The Harrogate site, however, has been acquired by Surge Padel, which is based alongside it at Hornbeam Park.
It continues to trade as normal, as reported yesterday by the Stray Ferret.
Lee Lockwood and Gareth Harris of insolvency specialists RSM UK were appointed joint liquidators of Coach Gyms Limited on January 6.
In a statement today, RSM UK said:
The joint liquidators were appointed after the directors of Coach Gyms Ltd sought advice to address cash flow difficulties. The company has never been profitable, despite cash injections by shareholders and attempts to manage costs and improve income by growing gym membership, management has not been able to turn the business around.
Attempts by the directors to sell the business as a whole were not successful. For the creditors’ benefit the directors decided to sell the only profitable part of the business, which was the gym in Harrogate in December 2024. The Harrogate gym is continuing to trade under new ownership and members are unaffected by the sale.
Mr Lockwood said:
It’s a very challenging time for businesses and unfortunately the company struggled with failed membership growth combined with high base costs and rents, making it difficult to navigate tight profit margins. The fitness industry is a highly competitive market and due to ongoing financial challenges and the wider economic outlook, the company had no other option than to effect an insolvency process.
We’re working closely with the company’s directors and other stakeholders to manage the liquidation and keep gym members and former employees informed. We are also assisting employees with recovery of their entitlements, and members have been informed of the unfortunate gym closures at Leeds and London.
A statement of affairs, published by Companies House on January 10, said the company went into administration owing 14 creditors £3,384,725.
The main creditor was listed as Leicester-based Select Investments, which was owed £3,353,000.
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