THE HIGH Court has continued court protection for the Jackie Skelly chain of 10 fitness clubs after being told its cash flows are improving and it has received expressions of interest from nine potential investors.
Mr Justice Frank Clarke yesterday confirmed Kieran Wallace as examiner to Map Dance Ltd, trading as Jackie Skelly Fitness, which employs 299 people in operating 10 clubs, five in Dublin and the rest in counties Meath, Wicklow and Kildare.
Rossa Fanning, for Mr Wallace, told the judge some 252 extra members had joined since the company secured court protection earlier this month, with consequent positive impact on cashflows.
In a statement yesterday, the fitness chain welcomed the appointment of Mr Wallace as examiner.
“The 18,000 members of Jackie Skelly Fitness have noticed no difference in the level of service they have received from our clubs since the initial interim examinership period began earlier this month,” the company said. “This will continue to be the case and Jackie Skelly Fitness looks forward to exiting examinership at as early an opportunity as possible,” it said.
The court previously heard the firm had made a small profit up to November last year, but there had been a fall-off in membership of 15 per cent after that, plus no significant new memberships in January, the usual busy period for membership of fitness clubs.
The firm had a turnover of €19.8 million in 2008, but this fell to €14.4 million last year. It has a debt of €12 million, mainly to Ulster Bank, and its problems were contributed to by renting premises which were subject mainly to upward-only rent reviews. Negotiations had taken place with some landlords, the court heard.
A court hearing earlier this month heard one landlord had issued a summons threatening to liquidate the company over rent, and two other landlords indicated they may do the same.
The fitness company was co-founded by Jackie Skelly and Mark Tooke, with the opening of the first club on Clarendon Street, Dublin 2, in 1993.