AN INTERIM examiner has been appointed by the High Court to the Jackie Skelly chain of fitness clubs after a judge was told that while it had run into financial difficulties, it was believed to have a reasonable prospect of survival.
Map Dance Ltd, trading as Jackie Skelly Fitness, secured the appointment of Kieran Wallace as interim examiner to the company which employs 299 people in operating 10 clubs, five in Dublin and the rest in counties Meath, Wicklow and Kildare.
The court was also told an unnamed party is willing to invest significant equity in the company.
Bernard Dunleavy, for the directors, said if any of the clubs have to be closed as part of the examinership process membership fees will be returned.
The court heard the company had made a small profit up to November last year but there had been a fall-off in membership of 15 per cent since then and no significant new memberships in January, the usual busy period for membership.
An independent accountant has projected another 15 per cent fall-off in membership in the coming year.
The company had a turnover of €19.8 million in 2008 but this had dropped to €14.4 million last year, the court heard.
It has a debt of €12 million, mainly to Ulster Bank and its problems were also due to the fact that it was renting premises mainly subject to upward-only rent reviews.
Negotiations had taken place with some landlords but one had issued a summons threatening to liquidate the company over rent and two other landlords indicated they may do the same.
Property developers Seán Dunne and Seán Mulryan, as landlords of a property in Wicklow, had sought payment of unpaid rents amounting to €294,180.
Mr Justice Frank Clarke said, on the evidence before him, he was satisfied there was a realistic opportunity for the company to address its problems in examinership.
A spokeswoman for Jackie Skelly Fitness said it will continue to service its members as normal. The fitness centres will continue to remain open and trade as normal to the public.
The company would continue to be run by its executive team, which includes Mark Tooke and Jackie Skelly, and looked forward to exiting examinership at the very earliest opportunity, the spokeswoman said.
“This process is about all sides recognising the current economic climate and putting the company into a position where it can be successful and continue to employ hundreds of people,” a statement from Jackie Skelly said.