Last month we shared with you the impacts the COVID19 pandemic has had on YYOGA, including the permanent closure of Park Royal, Whistler and Highgate.
Since then, as part of our restructuring process, we have been working with the landlords of our remaining locations in an effort to secure new leases to enable us to keep those locations open.
Today, we’d like to share an update with you regarding the status of those negotiations:
- Despite our best efforts, we were unable to reach an agreement with our landlord at YYOGA Yaletown which would permit us to keep operating at that location. As a result, we have made the decision to permanently close the Yaletown studio. The last day for classes at that location will be July 8, 2021.
- We were also unable to reach an agreement with our landlord, the District of North Vancouver, which would permit us to keep operating Northshore Elements. As a result, we have made the decision to permanently close the North Vancouver studio. The last day for classes at that location will be July 8, 2021. If you frequent this location and would like to join us in reaching out to the District of North Vancouver’s mayor and counsellors as a last effort to save this studio, please click here for how to do that.
- With these closures, the YYOGA studio network now includes: Downtown Flow, Kitsilano, West Sixth and Richmond Olympic Oval. We’d like to take a moment to thank our landlords and partners at these locations for supporting our local communities by supporting us.
- Guests affected by the closures are of course welcome to practice at other locations, to join us for virtual classes and/or to apply any unused value of a membership towards a retail purchase or YYOGA at Home subscription.
Guests of Yaletown and Northshore will understand when we say the sense of community at these studios has been truly special. We are deeply saddened to say goodbye to these original YYOGA locations that have been so deeply rooted in the community.
While this result is not what we had hoped for, we do want you to know that we tried our very best to achieve a different outcome. Unfortunately that was not possible.
We remain very focused on providing unparalleled yoga experiences both in-studio and virtually so we can continue to serve this community into the future.
In the interests of transparency and information sharing, we’ve provided a number of FAQ’s below. If you have account-specific questions please complete one of the below forms to get in touch:
Thank you for your ongoing love and support.
Terry McBride, Founder
and the YYOGA team
Q: How many studios are you closing?
5 studios total. We have already permanently closed 3 studios: Park Royal (West Vancouver), Highgate (Burnaby), and Whistler and will now be closing Yaletown and Northshore Elements.
Q: Why are you closing Northshore? You just reopened it!
We are deeply saddened and were expecting and working towards a very different outcome. We have been attempting to work in partnership with the District of North Vancouver for a very long time, and it has been a difficult process and ultimately we were unable to reach an agreement.
Q: Why are you closing Yaletown? You just reopened it!
We are deeply saddened and were expecting and working towards a very different outcome. Despite our best efforts, we were not able to negotiate a lease agreement that would make this location financially viable.
Q: What about the other studios you still have?
West Sixth, Kitsilano, Downtown Flow and Richmond Olympic Oval remain open for business and a part of the YYOGA membership network.
Q: What do you mean “restructuring process”?
Last month, YYOGA initiated a proposal process under the Bankruptcy and Insolvency Act (the “BIA”) in order to undertake a comprehensive restructuring. Obtaining protection from creditors while that process is carried out provides YYOGA with the necessary time and stability to restructure operations which were impacted significantly by the COVID-19 pandemic resulting in mandatory closures of our studios and capacity constraints while operating.
Q: Why did YYOGA file for protection under the BIA? Why did this happen?
YYOGA initiated a proposal process in order to undertake a restructuring under the BIA. Obtaining protection from creditors while that process is carried out provides YYOGA with the necessary time and stability to restructure operations which were impacted significantly by the COVID-19 pandemic resulting in mandatory closures of our studios and capacity constraints while operating.
Q: Does this mean YYOGA is bankrupt / closing all of its studios and liquidating its assets?
No. YYOGA is not bankrupt. It is continuing to operate while it restructures. For the majority of our studios, business will continue as usual.
Q: What is a Notice of Intention to make a Proposal?
YYOGA’s restructuring is being carried out under the Bankruptcy and Insolvency Act (“BIA”), which is a federal legislation which includes provisions enabling financially challenged corporations to restructure their business and financial affairs. A Notice of Intention to make a Proposal (“NOI”) is the form filed to initiate the proposal process under the BIA. During the proposal process, a company continues to operate ‘in the ordinary course’ while restructuring its affairs. Proposal proceedings are carried out under the supervision of the Proposal Trustee. This is not a bankruptcy. YYOGA expects to emerge from this process and continue to grow and thrive.
Q: What is the impact on Yaletown and Northshore guests?
For guests who regularly frequent Downtown Flow, Kitsilano, West Sixth, and Richmond Olympic Oval, there is no expected impact.
Guests who regularly frequent Yaletown and/or Northshore are invited to:
A) Visit any of the other four locations with their pack or membership;
B) Use their pack or membership to access Live Studio Feeds (virtual classes);
C) Convert their pack or membership to a YYOGA at Home subscription; and/or
D) Apply the unused value of their pack or membership towards a retail purchase.
No cash refunds are being offered.
For YYOGA at Home subscribers, there is no anticipated impact and access to on-demand and new streams added daily will continue on the same schedule as previously.
Q: I have questions about my account/membership/pack – who can I speak with?
As we are a small team, we ask that you contact us using the correct form below so we can ensure we collect the necessary details from you to expedite your request and provide a response ASAP. We are unable to provide account support through any of our social media platforms at this time.
Q: How long will the restructuring take?
We are already two months into this process, and while we are hopeful that we will be able to deal with our operational restructuring initiatives and capital raising so as to present a proposal to our creditors soon, we still have work to do, and it is not possible to provide any exact timing.
Q: What happens during the BIA proposal process?
Upon filing the NOI, there is an automatic stay of all proceedings against YYOGA for an initial period of 30 days. The stay has since been extended to July 13, 2021. During the proposal process, YYOGA’s business continues to operate uninterrupted and ‘in the ordinary course,’ while the company attempts to restructure its financial affairs.
The stay of proceedings can be further extended by orders of the Court for 45 days at a time up to a maximum of six months.
The stay of proceedings prohibits the enforcement of legal rights against YYOGA, including the collection of existing debts. After filing the NOI, the company is prohibited from making payments to existing creditors in respect of loans or other forms of credit that are owing at the date of the filing. YYOGA must pay its employees and suppliers for any ‘post-filing’ services or purchases.
Q: Do companies emerge from BIA proposal proceedings?
Yes, companies regularly emerge from protection. The intention of these proceedings is for YYOGA to restructure its affairs, raise additional capital and emerge from this process financially stronger and able to execute on a new business plan.
Q: Who is the Proposal Trustee? Where can I find information on the BIA proceedings?
Alvarez & Marsal Canada Inc. (the “Proposal Trustee”) is the Proposal Trustee appointed by the Official Receiver and is an officer of the Court. The Proposal Trustee’s role is to assist YYOGA with its NOI and proposal and to monitor the company’s ongoing operations during the process.
Information, including filing materials and any reports, will be made publicly available and updated regularly on the Proposal Trustee’s website at www.alvarezandmarsal.com/YYOGA. The Proposal Trustee can be reached directly at email@example.com.