Movefit Dakabin Pty Ltd, known for its gym franchise HIITzone Dakabin, has entered voluntary liquidation, leaving behind a trail of financial obligations and unanswered questions.
The gym’s closure has left the Australian Taxation Office (ATO) owed at least $25,000, and the extent of its debt to the Dakabin Shopping Centre’s landlord remains unconfirmed.
Adam Ward, an official from Worrells, has been appointed as the liquidator to oversee the process.
He said that the business still has a year left on its lease but the owner opted to shut down as it didn’t have any more financial resources to remain afloat and meet its obligations. Whilst the physical location of the gym stays vacant, Mr Ward said that there have been no instances reported of members who haven’t fulfilled their gym membership payments.
HITTzone Dakabin, once a thriving gym, attracted fitness enthusiasts through its round-the-clock high-intensity interval training and guided coaching sessions plus personalised nutrition plans prepared by its expert trainers.
What is voluntary liquidation?
Liquidation finalises a company’s affairs, commonly through creditors’ voluntary liquidation for insolvency, initiated by directors and shareholders after events like voluntary administration. Solvent companies opt for member’s voluntary liquidation to distribute capital to shareholders.
Governed by the Corporations Act 2001 (Cth), liquidation involves appointing a qualified liquidator to manage asset collection, investigations, and fund distribution to creditors and shareholders, ensuring an orderly conclusion of the company’s operations.
The closure of HIITzone Dakabin has raised questions about the stability of the fitness industry in the wake of the ongoing economic uncertainties. As the pandemic continues to reshape business landscapes, gyms and fitness centres have faced unique challenges, including fluctuating membership numbers and evolving health and safety regulations.