Ridout Barron


Business law challenges lead to closure of Sherwood Park gym

Legal issues can have serious consequences for individuals and businesses alike. In Sherwood Park, a dispute between a landlord and his commercial tenant has forced a health club to close its doors. Business law issues, including those around rental agreements, often force businesses to relocate or close altogether.

In this case, a landlord locked the health club's employees from their Alberta location after negotiations regarding rent stalled. The health club was seeking lower rent due to concerns over how construction and other nearby issues affected their membership. However, the parties were unable to come to any agreement, and the landlord eventually closed their doors. World Health Edmonton Inc. still hopes to reopen the gym.

World Health Edmonton Inc. updated its members on the business law proceedings, explaining that it was in litigation with the landlord. The company also explained in the letter to members that the construction and addition of a new building at the location contributed to the issue. The company says the building which was constructed near the gym is nearly double the size that the landlord had originally represented. Additionally, the shopping center was sold in June 2017, which impacted the gym's foot traffic.

The gym says it is committed to reopening. However, the case is ultimately subject to civil litigation under Alberta business law. Those who are facing similar challenges, either as a landlord or a business, may have legal options to consider. A lawyer in the area can help explain these options and how to go about civil litigation in such a case.

Source: sherwoodparknews.com, "Health club closes due to dispute", Gordon Kent, March 7, 2018

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