Wellington's oldest gym chain, Sports-Wide, is more than $1 million behind in taxes and may face liquidation.
The company, which owns The Atrium on The Terrace and another gym in Willis St, has a May 21 deadline to arrange a payment plan with Inland Revenue, NBR Online reported.
In the High Court at Wellington yesterday, Associate Judge Tony Christiansen said he would allow the chain "one final chance". An order for liquidation would be made if no agreement was reached.
The first Sports-Wide fitness club opened in 1983.
What effect will a potential ban on booze at Rugby Sevens 2015 have on you?Related story: Booze ban hovers over sevens