A leading fitness company has been left on the brink of collapse after a director received a devastating diagnosis and the company racked up nearly $ 1 million in debt.
Muscle Coach is a large Australian health and fitness company specializing in vitamins and supplements and operating six “superstores” in Brisbane and Melbourne.
But this month it was placed under voluntary administration and five of its stores abruptly closed, upsetting customers and leaving a number of employees jobless.
While stores in West End and Newmarket in Queensland and Blackburn, Ferntree Gully and Cheltenham in Victoria will remain closed, the brand’s online store and Coorparoo physical outlet in Brisbane will continue to operate as usual.
Cor Cordis administrator Darryl Kirk told news.com.au he has since been bought by another anonymous fitness company for an undisclosed figure in a confidential sale.
“The business was sold – I can’t tell you to whom or at what price, but it was definitely sold,” Kirk confirmed.
“We went through a sales process with a competitive offer and as a result we were able to keep and buy the brand.
“The buyer wants to perpetuate the brand and its presence.
Mr Kirk said there had been a “consolidation” of physical stores, but business was going as usual for the online platform.
He said Muscle Coach had accumulated nearly $ 1 million in debts to a “principal financier, the Australian Taxation Office and certain other commercial creditors.”
According to Mail Mail, one of the company’s directors had been diagnosed with serious health issues earlier in 2019, a factor Kirk said “most definitely” contributed to the company’s woes.
“It’s pretty sad,” he said.
“But I think any situation where you are able to preserve at least part of a business and the heart of a business – and allow the business to continue – is valuable.”
He said there might be a “short adjustment period” but customers could still buy in the store.
Mr Kirk said the fitness and supplements industry is very competitive and the industry has “a lot of players” and “under a lot of pressure” lately.
In a series of Facebook posts, the company alluded to the issues the company is facing.
“Hey guys, Muscle Coach is temporarily closed, but our Coorparoo store will reopen in the next 24 hours. We apologize for the inconvenience caused. We are working on relaunch with new operators and will update all clients shortly. Thank you for your continued support to MC! administrators posted on November 7.
And on Friday, he provided an update, posting that Muscle Coach was “in the process of moving to a new owner.”
“The online store is currently being restocked. Further communications from the new owner will be sent shortly, ”the team wrote.
“We thank you for your continued support and encourage you to take advantage of the sales. “
AUSSIE DETAIL A PROBLEM
Sadly, Muscle Coach is just one of many Australian retailers to have had issues in 2019.
In January, menswear retailer Ed Harry went into voluntary administration, and a week later Australia’s sportswear favorite Skins also revealed he was on the verge of failure after filing for a application for bankruptcy before a Swiss court.
At the end of the month, the beauty empire Napoleon Perdis announced that the cult makeup chain’s 56 Australian stores had closed for inventory. Administrators have been appointed and dozens of stores have since collapsed.
Footwear pioneer Shoes of Prey also saw his demise this year, along with British fashion giant Karen Millen, who revealed in September that he would soon be closing all Australian stores, leaving around 80 jobs in jeopardy.
Celebrity chef Shannon Bennett’s Melbourne burger chain Benny Burger was also placed under administration last month, followed by seven Red Rooster outlets in Queensland days later and then Australian clothing sensation from sport Stylerunner, which has since been sold to Accent Group Limited.
And just a few weeks ago, it was revealed that the popular Zanui furniture and housewares business had collapsed after it suddenly entered voluntary administration, leaving a few angry customers embarrassed.