Nautilus Plus, which has 33 branches and more than 50,000 members in Quebec, is protected from its creditors. Management says the pandemic and the 15-month closures it has imposed on fitness centers have left a very large hole in the company’s finances.
The company, founded in Quebec City in 1978, owes about $42 million to about 100 creditors.
Nautilus Plus has already started discussions to develop a refund plan. The company’s current leaders and a group of local investors, including Fondaction, can bail out the company, under an agreement to be negotiated with creditors.
In a press release, Nautilus Plus CEO Martin Légaré assured us that the company’s financial setbacks will not have consequences for customers and employees.
This temporary operation will have no impact on the Services and our obligations to our members and employees. The company’s activities will continue as usual.
The recovery plan formulated by the company provides for the maintenance of the head office in Quebec.
The COVID-19 pandemic has ended up eroding the company’s cash flow.
As you can imagine, the closure of all our branches during the vast majority of the past fifteen months has not been without consequences, especially on a financial level.Martin Legary writes.
The company takes cover from its creditors when the filling centers get the green light to resume their activities.
On June 7, with the Montreal and Laval regions moving to the orange zone, the 33 Nautilus Plus branches were able to reopen their doors.