Gym closed down - in a contract

Sam1988_2

Hi All,

Wonder if anyone can help me. My gym was closed down last night and is apparently being sold to another person. Not sure if it has been repossed or gone into administration or just closed. We had no advance warning and the gym is going to be closed for a while.

I am in a contract until Nov 2013 and am paying by direct debit. As I can not use the gym should I cancel my direct debit?? Would my contract still stand once they reopen under a new owner?

Any advise would be great.

Thanks

maninthestreet

Does your contract terms and conditions state anything in relation to the gym being unavailable for use?

Mrs_Arcanum

Definitely stop the DD ASAP as surely it would be a different company when it re-opens & your money will be going for nothing.

Worth going into your bank to explain the situation as well, just in case.

spacey2012

Dont cancel anything until you have served notice of frustration of contract.

State that due to the closure you are unable to use the contracted service and regard the contract as frustrated.
This strengthens your position in the event of a dispute.

Sam1988_2

I don't have my contract on me so would have to look at it when I get home

In terms of the notice of frustration of contract - what is it and how do I do it?

bris

Just cancel the DD and worry about the contract later. No point paying another month when there is nothing to pay for. The contract is frustrated anyway by the fact it's closed, this can't be disputet by the gym.

arcon5

There may be a clause permitting them to transfer the contract to a new company and continue providing the services as before.... this will usually involve a new bank account also. I'd personally cancel the DD to the current company and await notification from the old/new company as to what is happening.

Fire_Fox

How do you know it will be closed for a while? Is there a sign on the door? If so get evidence of this, eg. dated photographs clearly showing it is that club. Check Companies House and Google to see if there is anything about receivership.

Yes your contract can be transferred to the new owner, assuming same club, same price and similar facilities/ services. However I would not be paying in the mean time, cancel the DD write and explain why as per earlier posts, ensure they have your current contact details in case the new owner wants to reopen and for you to restart the DD. A lot of people change address or phone number or e-mail and forget to inform their gym.

I don't know how long they have to get in touch, it wouldn't seem unreasonable to me for you to want to join another gym, and obviously you wouldn't want two memberships running concurrently.

ValHaller

spacey2012 wrote: »

Dont cancel anything until you have served notice of frustration of contract.

State that due to the closure you are unable to use the contracted service and regard the contract as frustrated.
This strengthens your position in the event of a dispute.

While I have thanked this, plainly this contract is NOT frustrated. It is a straightforward matter of non performance. Frustration arises where there is a straightforward impossibility to continue the contract outside the control of either of the contracted parties. Eg Asteroid impact on gym. But in this case, the gym operator could choose to continue.

But the idea of serving notice is correct. I suggest a letter delivered through the door of the gym ASAP giving 7 days notice for them to advise you of on going arrangements and 14 days to resume would be reasonable. And cancel the DD as soon as the notice is served.

One point to watch however - sometimes gym subs are annual even if you pay by monthly DD. The money is provided upfront buy a lender direct to the gym and the DD is actually a loan repayment. Do not cancel the DD in this case as you will trash your credit record.