Total Fitness closure leads to loss of 100 jobs

ABOUT 100 jobs have been lost following the sudden closure of the Total Fitness gym chain in Dublin.

The company announced yesterday that it had ceased trading with the consequent closure of its three outlets at Castleknock, Malahide and Sandyford.

It is understood that staff had received no prior warning of the closure, although there had been a noticeable fall-off in membership at the gyms in recent months.

The company behind the gym chain, Centre Operators Limited, has been wound up. The firm is a subsidiary of the British-based Total Fitness Group, which was placed in administration last October.

In a statement published on its website, Total Fitness said it was “with deep regret” that it had cease trading from midnight yesterday.

The company said a liquidator would be appointed in due course and would deal with all queries in relation to outstanding memberships.

However, members, as unsecured creditors, may face difficulty in receiving a refund of their membership fees.

Total Fitness increased its annual fees in recent months to €682 in a move that angered many existing customers given that rival gyms were lowering their rates in light of the downturn in the economy.

The statement explained that the chain had become loss-making and claimed that its inability to negotiate lower rents for its three outlets was a major factor in their closure.

“We have attempted unsuccessfully to re-negotiate the rents,” it added.

Total Fitness also complained that the rents it had been paying were “significantly higher than the market value”.

At one stage, the gym chain employed 95 full-time staff and another 20 on a part-time basis.

However, it is believed that staff numbers have been falling over the past year as the group experienced a sharp downturn in business.

According to the latest accounts, the group’s Irish operations posted a loss of almost €760,000 in the 12 months to the end of March 2009

The group valued its net assets at €3.7 million at the time.