Infinite Cycle studios close as chain falls into liquidation

Infinite Cycle, once described as Australia’s largest indoor cycling franchise, is being wound up with liquidators appointed to the master franchise business.

Three years after launching as ‘Australia’s first interactive indoor cycle experience’, Infinite Cycle was placed into liquidation last week, blaming the ongoing impact of the pandemic and rising cost of living pressures as the company falls into liquidation.

Alan Sacharowitz, a founder of the fitness chain, confirmed to Sydney’s North Shore Times that the head office had shut with studios in Canberra and the Sydney suburbs of Bondi, Green Square, Neutral Bay and Waterloo now all closed.

Sacharowitz attributed the company’s downfall to the “slow recovery out of Covid” and inflation pressures impacting the business model, including rising commercial rental costs.

The Balgowlah gym is still trading after studio franchisee Vanessa Spinks bought the rights from Infinite Cycle to continue operating the studio. The gym is still using the Infinite Cycle brand.

Spinks advised “(the company’s management) were in financial distress and were trying to grow during Covid which was tough for them.

“They thought things would go well and then we got an email saying they’ve gone into liquidation.”

Noting that she understood the business was trying to sell off the rights and intellectual rights to a third party who was looking at buying but were unsuccessful, Spinks added “I feel very sad for them - it’s a good, fun product and I think we have something unique to offer the market.

Spinks recognised there were broader challenges facing the fitness sector - highlighted by the by collapse of several F45 franchises over recent weeks.

She went on to say “these days there are so many fitness centres in the market and you can basically do anything because there’s a studio for everything.

“There are pressures - it’s cost of living, it’s mortgage rates, people have to stop spending somewhere. When your mortgage goes up $1000 a month you’ve got to cut somewhere.

“It’s been tough to keep going but things are starting to pick up now and we’re trying to get it to a stage where it’s a viable business.”

Infinite Cycle had a studio in the Melbourne of Armadale which is still trading under the Infinite Cycle brand.

Liquidator Irving Kwek of insolvency firm Worrells will oversee the winding up of Infinite Cycle.

Liquidation is the process of converting a company's assets into cash, and using those funds to repay, as much as possible, the company's debts.