Hit by pandemic and growing debts 23 gyms plan to go on sale in Bahrain

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Twenty-three gyms are planning to go on sale “soon” for failure to pay growing debts and unpaid rents due to their frequent closures as part of the Kingdom’s measures to prevent the spread of the coronavirus (COVID-19).

This was confirmed by Association of Gymnasiums and Health Clubs head Abdullah Al Morbati in an interview with Al Ayam newspaper.

Gym owners have been complaining about the accumulation of debts and unpaid rents and their inability to pay them because of poor revenues.

Lack of cooperation from real estate owners regarding late payment of rents makes matters even worse for them. Al Morbati said that the operating cost of gyms is very high.

Rent constitutes the largest portion of the operating cost, he noted. Revenues of gyms have declined significantly since the beginning of the pandemic last year.

The implementation of precautionary measures to limit the spread of the virus and their closure for more than six months last year has worsened the situation for owners.

Furthermore, the intermittent closures have put a strain on their already meagre earnings that are not even enough to cover their monthly operating cost.

Some gyms normally run their businesses at an operating cost amounting to more than BD4,000 per month. Al Morbati pointed out that the government has reduced the burden of the pandemic on institutions and citizens through the large support packages that it provided.

The private sector, especially real estate owners, however, have failed to cooperate even as required by the government. Many owners of rental properties for gyms have refused to heed the government directives, and insist on collecting full rent amounts since the beginning of the pandemic.

Some of them also have taken legal actions against gym owners for paying their rentals late. Al Morbati called on the government to intervene to resolve the problem, saying gym owners have committed to following all precautionary measures and supporting the national efforts to contain the spread of the virus.