Tue, 04 Aug 2020 | ADMINISTRATION
Sports retailer and gym operator DW Sports has said it is poised to enter administration, due to the impact of the mandated closure of its store portfolio and gyms during COVID-19 lockdown. The company will work with administrator BDO to save as many of its 73 gyms as possible, but all 75 stores will close.
DW Sports, which was founded by former Wigan Athletic owner Dave Whelan, had already announced the closure of 25 of its stores last month and the remaining 50 will now enter closing-down sales.
The company hopes that a restructuring process will enable it to save as many gyms and jobs as possible, but added that the closure of some gyms was “inevitable”. 59 of the group’s UK gyms have reopened, with the remaining 14 unable to due to government restrictions. DW Sports says its sister company Fitness First, which operates 43 clubs, is unaffected by its administration.
Administrators say they hope to supports employees, customers and gym members as far as possible while seeking a buyer or buyers for as "much of DW Sports' business as can be achieved."
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.”
Long added that appointing administrators gave the company “the best chance to protect viable parts of the business, return them to profitability, and secure as many jobs as possible.”
The group’s most recent available accounts were to the year ending March 31 2019. DW Sports reported fixed assets valued at £146.9 million, with current assets of £43.6 million, net current liabilities of £58.7 million and net assets of slightly over £55 million.
The group reported turnover of £222.2 million for the year, down from £222.9 million the year prior, with fitness clubs generating £137.9 million and retail stores £84.3 million.
Find businesses for sale here.
If you are looking for an exit, we can help!
Trading for over 18 years, this e-commerce & telephone service business specialises in stag, hen & group activity breaks. This e-commerce and telephone serviced business is run by a fully trained and self-managed team of knowledgeable individuals who...
LEASEHOLD
The well established business opportunity originally opened its door over 25 years ago, and has been under the current ownership. During that time, they built up an excellent reputation and loyal customer base within the local area.
LEASEHOLD
An opportunity has arisen to acquire a reputable and successful business operating at the forefront of the leisure market. Supplies an extensive range of products for trade and DIY vehicle conversions, including roofs, fittings, wood, and complementa...
LEASEHOLD
03
|
Feb
|
Social media marketing firm acquired at up to 41.6x operating profit | BUSINESS SALE
Manchester-based social media and influencer marketing agenc...
03
|
Feb
|
Pub group planning to sell 1,000 sites as pressures on hospitality mount | COMMERCIAL PROPERTY
Stonegate Group, the UK’s largest pub company, is repo...
02
|
Feb
|
Babble hits 12 acquisitions in a year with double takeover | BUSINESS SALE
London-based cloud technology firm Babble has continued its ...
Sign up to receive our acquisition alert emails to get your FREE guide
08
|
Jan
|
Nightclub operator Deltic acquired by Rekom in cut-price deal | BUSINESS SALE
UK nightclub operator Deltic has been acquired by Scandinavi...
24
|
Aug
|
Frasers Group acquires certain DW Sports assets for initial £37m | BUSINESS SALE
Frasers Group has acquired some of DW Sports’ gyms and...
17
|
Aug
|
Frasers Group bids for DW Sports | BUSINESS NEWS
Mike Ashley’s Frasers Group has reportedly bid in exce...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources