National fitness chain Result Based Training (RBT) has appointed voluntary administrators.
Founded by entrepreneur and business coach Travis ‘TJ’ Jones in 2011, the gym has 20 locations, including a presence in the US, and about 85 employees.
The gyms will continue to trade through the administration, but Henry McKenna of Hayes Advisory says a number of unprofitable locations will need to close in the coming weeks.
“We’re hopeful of being able to keep the business going in a more profitable format on the other end of the administration,” McKenna told SmartCompany on Thursday morning.
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“I’m still trying to find out how it’s all performing,” he says.
In a statement sent on Thursday morning, Jones said four locations (Chatswood, Gold Coast, Rockdale and Braybrook) will close on April 28.
Affected members are being contacted and offered an option of relocating to other gyms or being given refunds.
“Moving forward we will have a simpler structure, more streamlined communication, straightforward targets that are easy to achieve for managers that are clearly communicated, and constant accountability and support to allow staff to reach their targets,” Jones said.
Angry customers have taken to social media in recent months claiming the business has been slow to issue them refunds.
Asked about the circumstances which led to the collapse, McKenna cited a “very large” tax debt, although he confirmed no garnishee notice was issued.
Jones confirmed the tax debt relates to a franchise buyback the business undertook in 2017, which saddled him with an unexpected bill.
With the largest creditor being the ATO, a sale of the business is one option, but McKenna is also considering a restructure that could see the company returned to Jones.
Jones confirmed he intends to submit a deed of company arrangement to reclaim control of the company in the coming weeks.
Other than RBT, Jones also lists himself as the mind behind several other ventures, including a small-business coaching service, a digital marketing company and a not-for-profit charity.
RBT Combined Services, RBT Leases, RBT Members and RBT Holding Co. have also been placed into administration alongside the primary business.