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$41.9 million in debt: Nautilus Plus protects itself from its creditors

$41.9 million in debt: Nautilus Plus protects itself from its creditors

In financial difficulties, the Nautilus Plus brand protects itself from its creditors. The company is withdrawing nearly $42 million in debt.

On Thursday, the fitness center group, which is owned by investment firm Novacap and Caisse de dépôt et placement du Québec, placed itself under bankruptcy and insolvency law with the aim of submitting a proposal to its creditors.

“Our goal is to pursue our mission and preserve the identity of Quebec. This is why at the end of the financial restructuring, it is proposed that a group of investors, including Fondaction and existing directors, invest in Nautilus Plus,” declared CEO Martin Legari, who will participate in the plan. Re-launch.

The latter was not available for an interview Newspaper, yesterday. Regent Raymond Chabot is responsible for this file.

According to public documents, the group has debts of $41.9 million. In particular, the company owes $28.4 million to the Bank of Montreal, $8.26 million to the Quebec Depository and Placement Fund and more than $490,000 to Ivanoi Cambridge.

Several other property owners are among the 115 creditors, including Cominar.

Management believes its recovery plan should allow the company to maintain its services and preserve 700 jobs. It also says it wants to honor all of its obligations to its members and employees.

In the summer of 2020, he recalled, a class action application on behalf of the members of Nautilus Plus was filed in the Supreme Court of Quebec against the chain by the law firm Stein & Stein.

The company has been criticized for continuing to withdraw monthly payments from its members beyond mid-March. Nautilus Plus has proposed extending the initial term of its subscription by several months as positions will remain closed.

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Nautilus Plus management confirms that the company has suffered from the closure of its positions “for a period of 15 months”.

The new investors, Fondaction, current CEO, Mr. Légaré, and current two vice presidents, Marie-Josée Després and Sylvain Cyr, say they want to keep the head office in Quebec and keep the management team in place. They want to “take over the whole company”.

In collaboration with Andrea Valeria

Nautilus Plus

  • founded in 1978 in Quebec
  • 33 centers Physical conditioning in Quebec
  • more than 700 workers
  • $41.9 million of debts