The sports store and gym organization DW Sports said it would fall into management, with 1,700 at risk.
The company is expected to appoint insolvency specialists on Monday after its revenue was wiped out through the prolonged closure of retail and gym outlets due to closure.
DW Sports, founded by former Wigan Athletic owner Dave Whelan, owned 73 gyms and 75 retail stores across the UK, but announced plans to close 25 of its retail stores last month.
He said he would shut down his retail business forever, with its closing operations effective immediately and final sales from its remaining 50 stores.
It is understood that he plans to protect as many jobs and gyms as possible throughout the restructuring process.
The fitness empire is the newest in a long line of retail stores and street businesses that announce cut-outs and store closures in the wake of the coronavirus pandemic.
The company is expected to appoint insolvency specialists on Monday after its revenue was wiped out through the prolonged closure of outlets and gyms, closing (file picture)
DW Sports, which he founded through former Wigan Athletic owner Dave Whelan (pictured), operated 73 gyms and 75 retail sites across the UK, but announced plans to close 25 of its outlets last month.
DW Sports that Fitness First, its sister corporation, will continue to function as a separate corporation and its 43 clubs will not be affected by management.
Directors intend to assist employees, customers and gym members wherever possible while looking to locate a customer for the DW Sports portfolio.
To date, 59 of its gymnasiums have reopened in England and Northern Ireland, with 14 locations in England, Scotland and Wales not being open due to government rules.
Chief Executive Martin Long said: “After Covid-19, we found ourselves in a position where the government ordered us to close our retail store portfolio and our entire gym chain for a long era of time, leaving us with a constant load base and 0 revenue.
“Like many other retail companies, the consequences of this incredibly complicated operating market have created inevitable profitability disorders for DW Sports.
“The resolution of appointing administrators was not taken lightly, but it will give us the most productive possibility to protect viable portions of the business, make them successful and ensure as many jobs as possible.
Announced that it would permanently stop its retail activities, with the interruption of its operations with immediate effect and the final sales of its remaining 50 points of sale (archival photo)
“This is a difficult style to handle for any business without long-term damage and with how limited we can get.
After exhausting all other functions that the company must have, we firmly believe that this procedure can be a platform to restructure the business and maintain many of our gyms for our members, and also protect the maximum number of jobs imaginable for our team members. ”
Follow Marks and Spencer who would fire 950 workers in the first wave of killings that will have an effect on thousands of workers.
The announcement came after John Lewis and Boots had already laid out thousands of workers in the wake of the coronavirus pandemic.
Britain’s major streets have been hit by the crisis when millions of shoppers turn to online shopping, and experts expect 250,000 layoffs in the sector.
Stores can now welcome consumers in stores, yet millions of others remain on the sidelines, with 65% falling last month last year and sales fell by 48% in the last 3 months.
Marks and Spencer will reduce 950 workers in the first wave of killing than thousands of workers. Pictured, a shop in Manchester
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