Like many local businesses, YYOGA has been dramatically impacted by the COVID19 pandemic. Over the past 13+ months, we’ve had to continually pivot and adapt in order to be there for our community.
We thank you for continuing to stand with us as we navigate these unprecedented challenges, including during this next chapter in our journey.
With the continuation of severely reduced capacities, restrictions on class styles and ongoing mandated closures, we’ve had to make further difficult decisions in order to ensure that we’re able to continue serving our community.
Today we voluntarily filed with the Office of the Superintendent of Bankruptcy a Notice of Intention to Make a Proposal (“Notice of Intention”) pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada) (the “BIA”). This is the first step in a restructuring process that will enable YYOGA to strengthen its financial position and continue operating.
To be clear: YYOGA is not bankrupt; it is continuing to operate while it restructures. Through this process we are able to proactively take the necessary steps to reposition YYOGA so that it can continue to thrive and serve this community sustainably into the future.
What this means for our members:
- As a primary step towards the restructuring of the business, we are permanently closing three locations: Park Royal, Whistler and Highgate, meaning these locations will not be reopening once restrictions are lifted.
- As soon as we are cleared to do so by public health, we will reopen our six other locations: Northshore Elements, Downtown Flow, Yaletown, Kitsilano, West Sixth and Richmond Olympic Oval.
- Guests affected by studio 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.
After 14 years of building community, it saddens us to say goodbye to three locations and therefore some of our guests who call these studios home. By focusing on our remaining studios and providing unparalleled virtual yoga experiences, it means 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 this contact form to get in touch.
Thank you for your ongoing love and support.
Terry McBride, Founder, and the YYOGA team
Q: Does this mean YYOGA is bankrupt / closing all of its studios and liquidating its assets?
No. YYOGA is not in bankruptcy. It is continuing to operate while it restructures. For the majority of our studios, business will continue as usual and we will reopen once public health regulations permit in-person classes to resume.
Q: What is a Notice of Intention to make a Proposal?
YYOGA’s restructuring is being carried out under the Bankruptcy & 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 supervision of the Proposal Trustee. This is not a bankruptcy. YYOGA expects to emerge from this process and continue to grow and thrive.
Q: Why is YYOGA filing 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: How many studios are you closing?
We are permanently closing 3 studios: Park Royal (West Vancouver), Highgate (Burnaby), and Whistler.
Q: How many people are you letting go?
We anticipate closing 3 studios, which means that some of the team members and teachers at those 3 studios who we are unable to offer roles elsewhere will be unfortunately laid off.
Q: What is the impact on guests?
For guests who regularly frequent Downtown Flow, Kitsilano, Yaletown, West Sixth, Northshore and Richmond Olympic Oval, there is no expected impact and these locations are planned to reopen once public health regulations permit in-person classes to resume.
Guests who regularly frequent Park Royal (West Vancouver), Highgate (Burnaby), or Whistler are invited to:
- A) Visit any of the other six 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 our form 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?
There’s a lot involved so it can be difficult to provide any exact timing. That said, 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 within 60 to 90 days.
Q: What happens during the BIA process?
Upon filing the NOI, YYOGA obtained an automatic stay of all proceedings against it for an initial period of 30 days. The stay is intended to ensure the business can continue to operate uninterrupted and ‘in the ordinary course,’ while the company attempts to restructure its financial affairs.
The stay of proceedings can be 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. While the stay is in place, the company can continue to operate and must pay its employees and suppliers for any ‘post-filing’ services or purchases.
Q: Do companies emerge from BIA 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 firstname.lastname@example.org.