A weight loss company has gone into liquidation and has announced it will not be refunding members.
Scottish Slimmers (2009) officially ceased trading on midnight on Friday due to financial problems.
Thirty members of staff, including those in based in the group’s headquarters and some of its coaches across Scotland, have been affected.
Scottish Slimmers ran a network of 140 classes across the country and these have all been suspended.
The group, based in Aberdeen, has said it is not in a position to refund members scattered across the country.
It has added they will be given free access to the Scottish Slimmers online and digital services instead.
These were run by companies who are not affected by the liquidation.
A Director’s Petition to appoint a liquidator, thought to be Blair Milne, of Campbell Dallas, based in Glasgow, was lodged on Monday.
Amanda Boyle, chief executive of Scottish Slimmers (2009) Ltd, completed an MBA at Dundee University.
She was also the co-founder and the chief executive of the Dundee-based Caledonia Contracts.
She said: “This has been an incredibly difficult decision to make as I know how much the network of classes means to our members and how our community of members has valued the support of their class coaches in their healthy living and weight loss programmes.
“Many of our coaches have years of enthusiastic and loyal service and I understand that this decision is a very difficult one for them.
“It is intended to create a social enterprise company to continue the class network where all profits return to the social enterprise. I took on the business just over a year ago in February 2018.
“Since then, it has become increasingly clear that legacy issues around the financial model for the company mean the structure of the class network is unsustainable.
“We have found ourselves unable to rely on previous reporting and company data.
“Despite an encouraging start to 2019, it has become impossible to sustain a model where the costs of running the class network are twice the level of the annual revenue generated by these classes.
“We are not alone in facing a significant decline in members who want a class environment – this is being experienced across the sector.”
The collapse does not affect food products or digital resources of the same name.
Amanda Boyle added: “I sincerely hope that creating a social enterprise which meets a genuine need in many communities can successfully provide a class network of support for those who want to adopt a healthier eating habit and lifestyle.
“This should mean that following a short period where there will be no classes, members will be able to once again access the support and encouragement they have had from Scottish Slimmers.”
Members can request access to the online service by emailing firstname.lastname@example.org