It is expected that DW Sports will appoint administrators following plans to restructure its gym and retail portfolio.
DW Sports operates 73 gyms and 50 retail stores, with 1,700 employees.
The chief executive explained that, due to Covid-19, they were left with a high fixed cost base and zero income after having to close the retail stores and gyms.
DW Sports have already closed 25 retail stores in recent weeks and the website will cease trading with immediate effect.
The business has confirmed that it will wind down the 50 remaining retail stores which will move into closing down sales from this week.
The sister company, Fitness First, will continue to operate as a separate company and will be unaffected by the administration.
The business hopes to protect as many jobs and gyms as possible and the decision to appoint administrators has not been taken lightly according to the chief executive.
Having exhausted all other available options for the business, the chief executive believes that the administration process can enable the business to restructure and preserve many of the gyms.
The administrators intend to support employees, customers and gym members as far as they are able whilst looking to secure a buyer for the DW Sports portfolio.
If your business has been affected by the pandemic, and you would like to discuss your options, please contact a member of our insolvency and restructuring team.
DW Sports has outlined plans to restructure its gym and retail portfolio, with administrators expected to be appointed today.