What happened: The trustee overseeing the restructuring and potential sale of Steve Nash Fitness says more time is needed to evaluate bids received for the company, which sought creditor protection in April.
Why it matters: The deadline for determining a successful bidder has been extended by a week, from May 29 to June 5.
More time is needed to evaluate bids received in the sale of SNFW Fitness B.C. Ltd., which owns more than two-dozen gyms under Steve Nash, Crunch Fitness and UFC Gym brands.
The trustee overseeing the process told Business in Vancouver that the original deadline for determining a successful bidder has been pushed back by a week. Qualified bidders will now be notified of the successful bidder on or before June 5.
After closing all of its locations in March and terminating all but a small group of its nearly 1,500 employees, SNFW Fitness successfully sought protection from its creditors in April, owing more than $35 million to more than 140 individuals, businesses and institutions.
The full amount owing to creditors is likely higher. Consumers who prepaid thousands of dollars for memberships and personal training sessions have not been fully accounted for. The same is true for employees, who may be owed severance, and the landlords of 32 leased locations who were not paid rent in April.
One business listed as an unsecured creditor told BIV that it is owed approximately double the $12,000 it is listed as being owed in SNFW Fitness court documents.
Mario Mainella, a licensed insolvency trustee with The Bowra Group, told BIV last month that more than 30 prospective buyers were initially identified and approached at the start of a month-long sales process that began in late April. He said the groups are not exclusive to Vancouver, and are generally connected to the health and fitness industry as operators, financiers or combinations of both. Expressions of interest from qualified parties not initially identified by The Bowra Group and MNP Corporate Finance Inc. have also been considered.
May 20 was the deadline for all qualified bids. A successful bid is still subject to BC Supreme Court approval.