Gym chain DW Sports collapses into administration, putting 1,700 jobs at risk
Gym chain and sportswear retailer DW Sports has collapsed into administration, putting 1,700 jobs at risk.
DW Sports, which will appoint administrators today, has closed 25 of its 75 stores and has ceased trading through its website immediately.
The remaining 50 retail sites will continue to trade, but will move into closing down sales from today.
DW Sports said it is “inevitable” that some of its 73 gyms will permanently close.
So far 59 gyms have reopened following coronavirus lockdowns in England and Northern Ireland. Gyms are not yet allowed to open in Wales and Scotland.
Fitness First, which is owned by the same group, is not affected by the administration.
The sports chain was forced to close all of its gyms and stores during the coronavirus lockdown, which was announced on 23 March.
Retail and leisure businesses have been hit hard by the lockdown restrictions, which left them with zero income and fixed costs to pay.
Thousands of redundancies have already been announced by high street retailers, including John Lewis and Boots.
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.
“The decision to appoint administrators has not been taken lightly but will give us the best chance to protect viable parts of the business, return them to profitability, and secure as many jobs as possible.”