The Centro de Empleados de Comercio de Río Grande y Tolhuin confirmed the definitive closure of American Gym after spending 2 weeks evaluating alternatives to keep it running. Its secretary general, Daniel Rivarola, attributed the decision to a decline in customers, rising utility and maintenance costs, and the opening of new gyms that divided demand within the same population.
The union leader also pointed to a labor-cost difference with private competitors. He explained that the CEC employs staff under formal employment relationships and does not use independent-contractor arrangements that, in his view, allow other establishments to reduce expenses. The gym had been created years earlier at the request of members and when supply was limited, but the diversification of fitness activities changed users' preferences.
The composition of the clientele ultimately weakened the service's union purpose. Only 11% of attendees were members of the Centro de Empleados de Comercio, while 89% did not belong to the sector. Rivarola said that continuing to finance a loss-making commercial activity for the second group could take resources away from benefits for members, including medicine, school supplies, school smocks, and the Christmas package.
The union also linked the closure to the recession in Río Grande, unemployment, and business shutdowns. Those conditions reduced the number of users and increased the relative weight of fixed costs in the institution's accounts. Management concluded that keeping American Gym open could transfer losses to other benefits considered priorities for retail employees.
The decision will have employment consequences. The CEC acknowledged that it will not be able to reassign all the staff who worked at the establishment and committed to paying the corresponding severance. It will also refund at its headquarters the fees paid by customers for the period after the closure, so people who paid in advance are not charged for a service that will no longer be available.
The end of direct operation does not yet determine the building's future or necessarily eliminate sports coverage. The union is considering reimbursements so members can attend other gyms and, later, could rent the space to a third party, sell the equipment, or install an activity exclusively for members. None of those options has been decided: the immediate steps are to complete severance payments, refund fees, and close the current operation.
