GYMVMT to File for Bankruptcy as COVID-19 Restrictions Continue for Fitness Sector

The Calgary-based GYMVMT fitness chain will close multiple locations as part of a restructuring effort aimed at saving the business in the face of COVID-19 restrictions, the Calgary Herald reported. International Fitness Holdings Inc. — which operates 21 fitness centers in Calgary and Edmonton under the names GYMVMT, HER GYMVMT, Bankers Hall Club and ClubFit — filed a notice of intention last week to file a proposal under the Bankruptcy and Insolvency Act. On its website, the company said a year’s worth of public health restrictions and COVID-19 guidelines affecting the fitness industry have left the business struggling to stay above water. IFH’s fitness clubs have been closed for half of the past 14 months, and during the months the clubs have been open, they have operated with strict capacity restrictions. According to its website, the company has already signed an asset-purchase agreement with a new shareholder, which will allow some of the clubs to continue to operate as a new corporate entity. However, some of the locations will need to close permanently, the company said, adding a finalized list of those clubs will be released by the end of May. The fitness industry has been one of the sectors hardest hit by the COVID-19 pandemic. On April 6, in the face of the ongoing third wave of cases currently affecting the province, the Alberta government banned all group fitness activities. One-on-one fitness with a personal trainer is currently the only service gyms can provide. Read more.