Blaming COVID's impact Result Based Training faces liquidation

Result Based Training, which operates gyms in Victorian and Western Australia, has reportedly entered administration - blaming lockdowns, a downturn and the rise of online fitness training for its demise.

As reported by the ABC, Results Based Training's holding company went into liquidation on Friday.

Result Based Training's Operations Manager, Olivia Jones was quoted as saying "the strain was becoming physical and emotional. Everything was really very tough."

It was also reported that the group, several of whose entities went into administration in 2019, had been in conflict with QBE Insurance over a COVID-19 claim on its business interruption policy.

With insurance companies saying they never intended that such policies would cover the Coronavirus pandemic, a number of cases are before the Courts across Australia.

Asked if a payout by now would have prevented their liquidation, Jones stated "yes ... it would have effectively solved a number of the financial problems and would have allowed us to be able to rebuild. It is very disappointing."

However, in October, a test case of the matter in the Federal Court resulted in what was seen as a win for the insurance industry's position that it was not obliged to pay out COVID-related losses.

On Monday, an appeal into that matter was handed down in a long and complicated decision which largely upholds the October outcome.

While blaming COVID for the liquidation, the group's financial troubles appear to pre-date the pandemic. In 2019, several Result Based Training businesses including RBT Holding Co Pty Ltd, RBT Members Pty Ltd, RBT Leases Pty Ltd, RBT Combined Services Pty Ltd and Result Based Training Australia Pty Ltd entered administration.

Result Based Training founder and Managing Director Travis Jones has been contacted for comment.