Extreme Fitness announced Friday that it has entered into a Letter of Intent (LOI) for the acquisition of all of its facilities by GoodLife Fitness Centres.
Extreme has 13 locations throughout the Greater Toronto Area with more than 100,000 members. The move would bring GoodLife’s membership count to more than 850,000, and over 300 clubs across the country. Extreme applied for protection against its creditors on Feb 7th in order to give it time to restructure.
The LOI contemplates GoodLife purchasing substantially all of Extreme’s assets and fitness facilities while retaining most of Extreme’s staff. In addition, upon the closing of the transaction, Extreme’s members would gain access to all GoodLife facilities across Canada.
The sale of assets to GoodLife is subject to certain customary conditions, including the execution of an asset purchase agreement and Court approval of the transaction. Court approval will be sought as part of proceedings which have been initiated by Extreme under the Companies’ Creditors Arrangement Act pursuant to an Initial Order issued by the Court on February 7, 2013.
During the CCAA Process, Extreme will continue to operate in the usual and ordinary course and without interruption and will fulfill all salary and benefit obligations to its employees. Extreme has undertaken the CCAA Process to assist in the proposed sale of Extreme’s business to GoodLife with minimal disruption to its employees, members and other stakeholders.
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