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 USA, and approximately 85 employees.
The health clubs will continue to trade through the administration, but Henry McKenna of Hayes Advisory says several unprofitable locations will have to close in the coming weeks.
In a statement delivered on Thursday morning, Jones said four locations (Chatswood, Gold Coast, Rockdale and Braybrook) would close on April 28.
Affected members are being contacted and provided an option of relocating to other health clubs or being given refunds.
Moving forward they stated they would have a simpler structure, more compact communication, straightforward targets that are easy to attain for managers that are clearly communicated, and constant accountability and support to permit staff to achieve their objectives.
Angry customers have taken to social websites in recent months claiming the business has been slow to issue them refunds.
Asked about the situation which led to the collapse, McKenna cited a”substantial” tax debt, although he confirmed no garnishee notice was issued.
Jones confirmed the tax debt relates to a franchise buyback the company undertook in 2017, which saddled him with an unexpected bill.
With the most significant creditor being the ATO, a sale of the company is one alternative, but McKenna is also considering a restructure that could see the firm returned to Jones.
Jones confirmed he intends to submit a deed of company arrangement to regain control of the company in the coming weeks.
