Planet Fitness NZ venture owes $10.14m with no gyms opened

The New Zealand company behind a planned Planet Fitness gym rollout owes creditors NZ$10.14 million despite never opening a location. A second liquidator’s report, released on 5 November 2026, sets out the liabilities of Castle Point Fitness NZ and continuing efforts to recover value for creditors.

From a 25-location plan to liquidation

According to the New Zealand Herald’s report of 6 November, a May 2022 agreement between Planet Fitness and joint venture Castle Point Fitness envisaged at least 25 locations. The company had pointed to the performance of Australian clubs as a model for the proposed New Zealand expansion.

Initial clubs were originally expected to open in November 2025. However, no location opened before Castle Point Fitness NZ was placed into liquidation by shareholder resolution on 19 March 2026. David Thomas was appointed sole liquidator.

The Herald reported that the business was placed into liquidation citing insufficient operating revenue. Company records described in the report show that Castle Point Fitness NZ was wholly owned by a New Zealand holding company of the same name, which was itself wholly owned by an American company of the same name.

For New Zealand’s franchise community, the case concerns a proposed international brand entry that did not reach its first opening. The planned minimum of 25 locations was an expansion ambition under the agreement, not an established New Zealand gym network.

Construction debt dominates creditor claims

The second liquidator’s report recorded 26 creditors owed a combined NZ$10.14 million. The largest reported amount was an outstanding secured debt of NZ$6.05 million owed to Alaska Construction and Interiors Auckland.

Castle Point Fitness NZ had two secured creditors at liquidation. The other was Public Trust, which confirmed to the Herald in April that it was not owed any funds. Its inclusion among secured creditors should therefore not be read as a separate unpaid balance to add to the reported debt total.

Employees were owed NZ$63,640 in unpaid wages, holiday pay and redundancy pay under a preferential claim. A further NZ$173,344.55 was recorded as owed to employees among unsecured creditors, although that amount remained subject to the claims being accepted.

Inland Revenue was owed NZ$5,331.61 for penalties and interest. Other unsecured creditors, including NZ Retail Property Group, Mercury and Planet Fitness International Franchise, were owed a combined NZ$3.8 million.

Those figures describe different categories of claims against the company. They do not establish what individual creditors will ultimately receive, and the liquidator had not provided an estimate of any distribution.

Equipment deposits are a recovery focus

Although no gym opened, the venture had ordered equipment and paid deposits. Thomas said he was working towards recovering those deposits or selling the equipment on the open market.

The report therefore identifies equipment-related recoveries as an active part of the liquidation, rather than money already available for distribution. Thomas also noted that his firm’s legal team might need to become involved.

Separately, Thomas and his team had recently gained access to the company’s Xero account, allowing them to begin investigating its financial affairs. That investigation would assess whether recoveries were available for creditors, including in relation to shareholder current accounts.

The financial investigation and equipment recovery work remained ongoing. Thomas could not estimate when the liquidation would be completed or whether there would be any distribution to creditors.

What prospective franchise partners can take from the case

The distinction between a development agreement and an operating business is central to this story. A plan for multiple locations can be announced well before the first site trades; in this case, equipment orders and deposits preceded any opening.

The reported liabilities belong to Castle Point Fitness NZ. They should not be presented as debts of Planet Fitness’s wider international network. Planet Fitness International Franchise was identified among the New Zealand company’s unsecured creditors.

For prospective franchise partners and suppliers, the case provides a practical reason to examine the legal entity behind an expansion proposal, alongside the brand and intended opening schedule.

Practical takeaway: Before committing to a new franchise rollout, seek independent advice on the contracting entity, funding arrangements and protection of deposits. Treat announced location targets separately from confirmed openings.