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Result Based Training fitness group enters administration after ‘very large’ tax bill

Result Based Training fitness group enters administration after ‘very large’ tax bill
April 18, 2019

Melbourne-based fitness chain Result Based Training (RBT), which operates in 20 locations across Australia, has appointed voluntary administrators.

Founded by entrepreneur and business coach Travis ‘TJ’ Jones in 2011, the group has more than 80 employees as well as a presence in the USA.

The gyms will continue to trade through the administration, but Henry McKenna of Hayes Advisory says a number of unprofitable locations will need to close in the coming weeks.

McKenna told SmartCompany on Thursday morning "we’re hopeful of being able to keep the business going in a more profitable format on the other end of the administration.

“I’m still trying to find out how it’s all performing."

In a statement sent on Thursday morning, Jones said four locations (Chatswood, Gold Coast, Rockdale and Braybrook) will close on 28th April.

Affected members are being contacted and offered an option of relocating to other gyms or being given refunds.

Commenting on the administration, Jones advised "moving forward we will have a simpler structure, more streamlined communication, straightforward targets that are easy to achieve for managers that are clearly communicated, and constant accountability and support to allow staff to reach their targets."

As reported by SmartCompany, angry customers have taken to social media in recent months claiming the business has been slow to issue them refunds.

Asked about the circumstances which led to the collapse, McKenna cited a “very large” tax debt, although he confirmed no garnishee notice was issued.

Jones confirmed the tax debt relates to a franchise buyback the business undertook in 2017, which saddled him with an unexpected bill.

With the largest creditor being the Australian Taxation Office, a sale of the business is one option, but McKenna is also considering a restructure that could see the company returned to Jones.

Jones confirmed he intends to submit a deed of company arrangement to reclaim control of the company in the coming weeks.

Other than RBT, Jones also lists himself as the mind behind several other ventures, including a small-business coaching service, a digital marketing company and a not-for-profit charity.

RBT Combined Services, RBT Leases, RBT Members and RBT Holding Co. have also been placed into administration alongside the primary business.

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14th May 2018 - ABC asks if fitness centre growth cycle might be coming to an end

12th February 2017 - Sage Institute of Fitness enters voluntary administration

5th December 2013 - Workout World enters administration as name lives on with Super Retail Group

26th November 2009 - Exercise Australia in administration

9th July 2009 - LeisureCo collapses into Administration

21st November 2008 - Beach House Fitness enters Administration

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