Why it matters: SNFW Fitness B.C. Ltd. owes more than $ 35 million to more than 140 creditors. The company has filed a notice of intent to file a proposal, which would indicate how it plans to restructure the business.
The company behind Steve Nash Fitness World and Sports Club has filed for creditor protection as it strives to restructure its business.
SNFW Fitness B.C. Ltd., which operates 27 facilities under the Steve Nash and UFC Gym brands, owes more than $ 35 million to more than 140 creditors.
In a letter to creditors, company management stated that the COVID-19 pandemic had had a significant economic impact on the chain’s operations, but court documents suggest that the company had significant debts before the outbreak. coronavirus in British Columbia.
SNFW Fitness closed its premises and fired all of its team members in March.
The company filed a notice of intent to make a proposal to its creditors on April 3.
“We are aware that in these difficult times, this decision will further increase your financial burden, our creditors. However, our intention to take this step is to gain the time and flexibility necessary to formulate a restructuring plan that will allow us to reopen our doors and resume work for a healthy life, when this crisis is over, ”says the letter.
SNFW Fitness’s largest creditor is the Bank of Montreal, which owes $ 32 million, according to court documents.
141 other creditors collectively owe $ 3.4 million. They include Google (owed more than $ 136,000) and Facebook, Inc. (owed almost $ 182,000).
The largest local creditors are Matra Construction Inc. of Burnaby (who owed more than $ 820,000), Sandman Hotel Group (who owed more than $ 94,000) and Fortis BC (who owed more than $ 72,000).
Vancouver Worldgo Travel Management Ltd. owes $ 25,242.64. The company has booked business travel for SNFW Fitness, and co-founder Eric Sakawsky said the business relationship of about two years was generally fine.
“What I guess in the end is not really good is that they asked us if they could trade above their limit maybe a few weeks before falling, and we said ‘ Yes, “said Sakawsky. Worldgo has authorized SNFW Fitness to spend above what was around a $ 15,000 limit, with the promise that a first payment would be made a few days later.
At the time of payment, Sakawsky said that the company had told him that it would not be able to release the funds.
“With travel probably being the hardest hit in all of this, it is certainly not ideal for – with everything else – having to endure their loss now. “
SNFW Fitness did not return repeated requests for comment.
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