A popular weight loss group has suspended all its north-east classes and will not be refunding its membership passes.
Scottish Slimmers ceased trading as of last Friday.
A directors’ petition to appoint a liquidator, with a view to appointing Blair Milne, restructuring partner based in Campbell Dallas’ Glasgow office, was lodged today.
Thirty members of staff including those in headquarters and coaches across the class network are affected by this.
It ran the network of 140 Scottish Slimmers classes across Scotland.
All Scottish Slimmers classes have now been suspended and refunds on membership passes cannot be provided.
However, all existing members affected by this action will be given free access to the Scottish Slimmers online service and digital service which are run by companies unaffected by the liquidation.
Members can request access to the online service by email@example.com
Amanda Boyle, chief executive of Scottish Slimmers (2009) Ltd, said: “This has been an incredibly difficult decision to make as I know how much the network of classes means to our members and how our community of members has valued the support of their class coaches in their healthy living and weight loss programmes.
“Many of our coaches have years of enthusiastic and loyal service and I understand that this decision is a very difficult one for them.”
It is intended to create a social enterprise company to continue the class network where all profits return to the social enterprise.
She added: “I took on the business just over a year ago in February 2018. Since then, it has become increasingly clear that legacy issues around the financial model for the company mean that the structure of the class network is unsustainable.
“We have found ourselves unable to rely on previous reporting and company data.
“Despite an encouraging start to 2019, it has become impossible to sustain a model where the costs of running the class network are twice the level of the annual revenue generated by these classes.
“We are not alone in facing a significant decline in members who want a class environment – this is being experienced across the sector.”
Scottish Slimmers digital resources are unaffected by the liquidation of Scottish Slimmers.
Similarly, the food products are unaffected, and products will continue to be available through all usual outlets.
Amanda Boyle said: “I sincerely hope that creating a social enterprise which meets a genuine need in many communities can successfully provide a class network of support for those who want to adopt a healthier eating habits and lifestyle.
“This should mean that following a short period where there will be no classes, members will be able to once again access the support and encouragement they have had from Scottish Slimmers.”