Crown Fitness - FAQ's
CROWN FITNESS LIMITED
TRADING AS FLY LDN
PROPOSED CREDITORS VOLUNTARY LIQUIDATION
The director of Crown Fitness Limited (“the Company”) has taken steps to place the Company into liquidation as a result of the Company’s insolvency. The Frequently Asked Questions below have been produced to help with any questions you might have in this respect.
1. What is insolvency?
A company is deemed insolvent if it is unable to pay its liabilities as and when they fall due or if the value of its assets is less than the amount of its liabilities, taking into account contingent and prospective liabilities.
2. What was the Company’s business?
The principal business of the Company was a fitness centre.
3. Why is the Company insolvent?
The Company was not in a position financially to pay its liabilities, hence, it was considered insolvent and its director took the decision to take steps to place the Company into liquidation.
4. What is liquidation?
Liquidation is a formal insolvency procedure designed to bring the activities of an insolvent company to an end. The liquidation will be handled by the appointed liquidators.
5. Who are the liquidators?
The proposed joint liquidators are Milan Vuceljic and Michael Solomons of Moorfields Advisory Limited. Both are qualified insolvency practitioners and are licensed to act by the Institute of Chartered Accountants in England and Wales and the Insolvency Practitioners Association respectively.
6. How will the costs of liquidation be met?
The costs of liquidation are usually met from the Company’s assets as part of the liquidation procedure and are subject to approval from unsecured creditors.
7. What are the liquidators’ duties?
The liquidators have a duty to bring in the assets of a company and realise them for the benefit of the general body of creditors as a whole. They are also required to investigate the reasons for a company’s failure and report on the conduct of the directors who held office in the three years prior to a company’s formal insolvency event.
8. Why was notice of the gym’s closure not given sooner?
The director contacted Moorfields on 21 September 2022 to discuss the Company’s options and the possible alternatives to liquidation in light of the Company’s financial difficulties.
The director instructed Moorfields to place the Company into liquidation on 23 September 2022 and immediately made arrangements to close the doors on 25 September 2022 in a safe and secure manner.
9. What does this mean for affected customers?
A letter addressed to the unsecured creditors of the Company will be issued shortly, setting out the next steps and explaining what the liquidation means for you.
10. What will happen to my membership account?
The Company sadly closed its doors and ceased to trade on 25 September 2022. As a result, the Company will no longer offer any further classes or honour any classes that were paid for in advance.
11. How do I know that I won’t have any more money charged to my account?
We confirm that the online bank facility in place to charge payments has been terminated as at 25 September 2022. Accordingly, your account should not be charged going forward.
12. Can I obtain a refund for any payments made?
Unfortunately, due to the Company’s insolvency, it is not possible to refund any balances to members who have paid in advance. Should you have an outstanding balance this will be classed as an unsecured liability.
13. How do I cancel my membership?
All memberships have now been frozen and therefore it will not be necessary to cancel your membership.
14. I prepaid for a voucher. Will I receive a refund?
Unfortunately, due to the Company’s insolvency, it is not possible to refund any vouchers. Should you have an outstanding balance this will be classed as an unsecured liability.
15. My banking details have changed. What do I do?
Please send up to date bank details to crownfitness@moorfieldscr.com
16. I need to update my address details/email address
Please send up to date contact details to crownfitness@moorfieldscr.com
17. How do I make a claim?
You can make a claim in the liquidation of the Company for your unsecured claim by completing a proof of debt form. A form will be provided to all creditors as part of the liquidation process.
If there are sufficient asset realisations in the liquidation to declare a distribution to the unsecured creditors, the Liquidators will adjudicate all claims and issue a notice of intended dividend to begin the distribution process.
18. What is the expected return to unsecured creditors?
Once the Liquidators are appointed, they will formally begin the process of realising the Company’s assets for the benefit of the Company creditors.
It is too early at this stage to determine whether there will be sufficient asset realisations to pay a distribution to the unsecured creditors. Updates will follow to creditors following the Company’s liquidation.
19. Will I stay informed during the liquidation?
All creditors will receive notice of the proposed liquidation. Once a company enters liquidation creditors will again receive formal notice of this event.
Further communication is then provided through a website, details of which will be distributed at the appropriate time, and almost all further correspondence to creditors will be made available through this medium.
Progress reports are provided annually and there is no periodic reporting.
ADDITIONAL CUSTOMER SUPPORT
Should you have any further queries that have not been answered on this help page, please contact our customer support team on the following details:
Email: crownfitness@moorfieldscr.com
