March 4, 2021
WG London Fitness Inc. et al., which operate a chain of 16 fitness centres from leased premises across southern Ontario under the “Crunch Fitness” banner (collectively, the "Respondents"), had Richter appointed as monitor over their assets and properties on March 4 on application by BMO, owed approximately $11.7 million. In late September 2020, BMO learned for the first time that the respondents owed at least $1.1 million in unremitted HST and employee source deductions. These arrears are in addition to the $1.4 million the Respondents owe to their landlords. Currently, the Respondents are unable to carry on business and pay their creditors without further support from BMO, which BMO is not prepared to provide. BMO's application to appoint a receiver was adjourned and Richter was appointed monitor. Counsel is Miller Thomson for BMO and Lerners for the Respondents.