Tuesday, August 4, 2015
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Farming GUARDIAN
AUGUST, 2015
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PHOTO AMANDA KONYN 030815-AK-055
New gym blamed for business closure BY DAISY HUDSON
DAISY.H@THEGUARDIAN.CO.NZ
Drought-stricken farmers
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COVER PHOTO AMANDA KONYN 270715-AK-139
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The ratepayer-funded EA Networks Centre is being blamed for running an Ashburton company out of business. The Gym Company has announced it will close its doors on August 14 after 18 years of operating in Mid Canterbury. The closure has been blamed on the opening of the new gym at the EA Networks Centre, which The Gym Company co-owner Frank Connolly says poached his clients and stifled business. Mr Connolly slammed the council’s
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earlier claims that the new gym would not affect local businesses as “absolute rubbish”. While he was not sure how many clients he had lost to the new gym, he believed it was a lot. The gym had also taken a hit when Studio Fit, the company that ran fitness classes at The Gym Company, was incorporated into the new EA Networks Centre facility. “We’ve lost a huge amount of clients, we’ve lost our classes, we’re not getting many people in,” he said. “Unfortunately they can do this at such a low price and the ratepayers
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have to pay for it.” The Gym Company is not the only business feeling the heat. Last week, Curves Ashburton franchisee Viv Williams said the new gym was luring clientele. Private businesses couldn’t compete with a ratepayer backed facility. In April, Mr Connolly and business partner John Moore asked the council to buy the company’s 395 member client base. This would have allowed the company to cease trading; however the council decided not to buy it.
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