The necessary closure of many economic activities as well as the staggered peeling process has begun to take its toll. One of the sectors most affected has been the gyms and what is happening now with Sport World accounts for it.
The renowned sports club brand announced that it will definitively close three branches to gain greater profitability in the rest of its complexes; however, with this measure you will lose 3 thousand 164 clients.
Goodbye to 25 percent of staff
Specifically, the clubs that will cease to operate are those that were located in Ciudad del Carmen, Cuernavaca and Minerva.
Through its financial report delivered during this week, Sport World acknowledged that “the suspension of activities in all clubs since the last week of March, in accordance with the provisions of the health authorities and the non-generation of the usual business income, made it necessary the rapid execution of actions tending to maintain the operating structure of the company and its financial strength in the face of such a complex situation ”.
In a timely manner, the firm indicated that they had an accounting impact of 42.9 million pesos, which did not affect the flow of the company.
However, sticking to an internal restructuring plan, Sport World cut its staff at all levels, both club and corporate, by 25.6 percent.
Falls of more than 80 percent
« It was necessary to implement initiatives aimed at containing expenses and gaining efficiency in the cost structure in aspects such as personnel expenses, rents, marketing and operating expenses beyond the reduction of inactivity, among others, » the document states.
As for active clients, although it was possible to maintain the client base that existed prior to the suspension of activities, with the exception of the 3 closings mentioned above.
Despite this, membership income and membership maintenance fell by more than 80 percent.
“Membership and maintenance income reached 77.8 mp, a reduction of 81% compared to the same period of the previous year due to the non-collection of ordinary maintenance during the months that the suspension of activities applies and the low performance of the commercial activity observed in the quarter reflecting the confinements required by the health authorities ”, Indicates the report.
An evil that everyone suffers
What happens with this firm is only a reflection of the complex situation that millions of gyms live in in the country.
It is enough to recognize that, according to the Mexican Association of Gyms and Clubs (AMEGYC), gym chains across the country lose around 2 billion pesos for each month they remain closed, so until last May accumulated losses were estimated at almost 6 billion pesos.
Although in some states of the Mexican Republic the green light has been given for these establishments to start operating again, the truth is that the reactivation is very slow, so that news such as those given by Sport World will be constant in the following weeks.
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