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Hard times take bounce from exercise studio

by Katie Storey
2/ 9/2008

PENSIONERS have been left out of pocket with the closure of another Rochdale business.

The Smith Street-based Motorcise exercise studio closed its doors for the final time at the weekend.

A sign outside the premises states that the property has been subject to a compulsory purchase order, but a spokesman at Rochdale Council said it had no involvement with the site closure.

The business, which specialised in exercise for the over-40s, had become a social hub for older people in the town, providing them with a place to make friends and keep active.

Many of the members paid in the region of £300 for a year’s membership and many will have lost this as a result of the closure.

Rochdale Council executive director Andy Zuntz said: "There has been no compulsory purchase order. We believe that the company has gone into liquidation. We would advise members to contact the liquidator for further information."

A spokesman for insolvency company Panos Eliades Franklin, which is dealing with the closure, explained that Motorcise opted for creditors’ voluntary liquidation after running into debt.

Creditors voluntary liquidation occurs when the shareholders, usually at the directors’ request, decide to put a company into liquidation because it is insolvent. Either the company cannot pay its debts or it has more liabilities than assets.

The spokesman said that because of the credit crunch, fewer people had the money for luxuries like health club membership and, as numbers dropped, the centre could no longer remain open.

Members who had paid their fees using credit and debit cards should be refunded from their bank with insurance, but those who have paid in cash will be left out of pocket.

Motorcise regular Norma Sayer, aged 79, from Adrian Terrace, Newbold, said: "I think it’s wrong that Motorcise has closed without an explanation. We’ve all lost money. They always had offers to pay up front and it’s wrong that we’ve lost out.  I’d already paid another six months’ membership.  Motorcise has kept me active and it provided company for older people. It shouldn’t be allowed."

The Observer attempted to contact Motorcise’s parent company for a comment without success.