DW Sports, the gym and sports retailer founded by former Wigan Athletic owner Dave Whelan, has announced it will enter administration, threatening 1,700 jobs. The company, which operates 73 gyms and 75 stores across the UK, said all retail outlets will close, but administrators BDO will try to save as many gyms as possible.
Chief executive Martin Long blamed the government-mandated lockdown during the Covid-19 pandemic for the collapse. '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,' he said. The firm's income, normally around £15m a month, fell to zero while it still faced a £3m monthly wage bill.
DW Sports had already closed 25 stores, and the remaining 50 will begin closing-down sales immediately. The DW Sports website has ceased trading. However, 43 gyms under the Fitness First brand, part of the same group, will not be affected. Administrators BDO said they aim to sell as much of the business as possible.
The collapse follows a £14m loan taken by the company before the pandemic, according to reports. The news adds to a growing list of job losses in the UK, with an estimated 150,000 redundancies so far due to the coronavirus crisis. Recent announcements include 35,000 job cuts at HSBC, 650 at Byron Burger, and 1,200 at the National Trust.
Mr Long criticised the 'limited support' available to the business during the crisis. 'Having exhausted all other available options for the business, we firmly believe that this process can be a platform to restructure the business and preserve many of our gyms for our members,' he said. DW Sports gym members are advised to contact their local gym or the customer service centre for more information.
