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Case Studies

Gym Business Insolvency & Personal Guarantee Success

Date

30 June 2025

From Crisis to Comeback: How We Slashed a £330K Debt by 50% and Saved a Gym Director from Personal Liability

Our client, a director of a gym business, approached us with his business partner after realising their company was no longer financially viable and was heading into insolvency. Despite the gym’s closure, a significant outstanding balance remained with a commercial finance provider, primarily tied to gym equipment and fixtures. Crucially, this finance liability was personally guaranteed by both directors, under joint and several terms.

With over £330,000 initially believed to be outstanding and creditor pressure intensifying, the client proactively sought our expertise. His priority was to protect his personal position, avoid formal recovery action, and find a manageable way to deal with the personal guarantees left behind after the business failure.

Outcome Achieved: 50% Debt Reduction & Managed Repayment Terms

Following our strategic engagement and a forensic review of the finance agreements, our debt solutions team established that the true outstanding balance stood at approximately £147,500 – significantly lower than originally thought.

Through persistent negotiations, we successfully achieved a 50% reduction in the overall liability and agreed upon a structured payment arrangement with the finance provider. This relieved the client of immediate financial pressure and prevented any enforcement action from being taken against him or his business partner.

How We Secured This Outcome

We leveraged our expertise and negotiation strategies to achieve this significant result:

  • Comprehensive Financial Review: We conducted a detailed review of the client’s financial exposure, including all three loan agreements across multiple assets.
  • Direct Creditor Engagement: We engaged directly with the finance provider, challenging key elements of their claim, including asset depreciation, interest charges, and equipment resale viability.
  • Strategic Negotiation: We negotiated against the backdrop of the business’s insolvency and the client’s willingness to cooperate fully.
  • Structured Proposals: We provided strategic documentation and structured proposals to substantiate our offer and secure a sustainable resolution.

Key Challenges We Overcame

A significant challenge was the finance provider’s reluctance to acknowledge the rapid depreciation of gym assets, which had plummeted from £140,000 to an offer value of just £49,000 in a short timeframe.

Despite these obstacles, our specialist team adeptly leveraged these points within our negotiation strategy, presenting a commercially justified case for debt reduction.

The Worst-Case Scenario (and How We Averted It)

Had the client not acted swiftly or failed to appoint professional support, he and his business partner would likely have faced formal recovery action. This could have included court proceedings, statutory demands, and the severe risk of bankruptcy proceedings being pursued under the personal guarantees. Our intervention ensured this worst-case scenario was avoided.

Client’s Feedback

Following the agreement, the client expressed immense relief and appreciation for our support:

“This was a massive weight off my shoulders. I was completely out of my depth with this, and I’m really glad I didn’t try to handle it alone. The plan BellCo put in place made it manageable, and I can finally move on confidently knowing this won’t come back to haunt me.”

Are You a Gym Owner Facing Similar Challenges?

If you’re a gym owner or fitness professional dealing with creditor pressure, asset finance liabilities, or personal guarantees following a business closure – you are not alone.

We specialise in helping directors like you negotiate manageable outcomes, reduce personal exposure, and regain control after financial distress.

📞 Speak to our team today for a confidential case review and tailored guidance.

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Michael Withers

Debt Solutions Manager

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Excellent service during a very difficult journey

I seldom write reviews, but I felt the service and help I got from Bell and Company was outstanding. My wife and I had difficulties with a major banking institution and could not find a way of getting a release....

Excellent service during a very difficult journey

I seldom write reviews, but I felt the service and help I got from Bell and Company was outstanding. My wife and I had difficulties with a major banking institution and could not find a way of getting a release. We were ‘hamstrung’ in that we couldn’t service the debt or negotiate a way to restructure it. It was a constant worry and financial burden for over 15 years. We had medical worries and children at college and full time education. When we got in contact with Bell and company they helped us, reassured us and found us a way out. Luke Logan handled our case and could not have been better. He understood all the different aspects of our problem. He was empathetic and kind. He showed a keen grasp of our issues and problems immediately. A solution was reached and we were extremely happy with the terms. I cannot praise this company and Luke high enough.

Dara McEniff - IE

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