Any particular circumstances?
Do you really want to know? Regarding what I have learn is that there is some common mistakes what leads to this:
1. Gym's are found by bodybuilders etc. with no knowledge about the running business what so ever.
2. They lease space, equipment, everything and by doing that, their monthly cost go sky high
3. When they realize that their balance is fucked up, they try to save money by cutting expenses from cleaning, maintenance of the equipment etc. and by doing that, they ruin even what little comfort and functionality out there has ever been. People hate dirty dressing rooms and toilets, broken gym equipment etc. and they stop coming, meaning that they also stop paying.
I have seen this plenty of times. Those who fails, are mostly victims of their own stupidity. You can only be successful in this business, if you do it right all the way. First of all, you must have some your own money. You can't be successful with the business, which is based 100% on loan. You can't start with the expensive location, it will eat all your income. You have to start with low budget location and you have to buy your equipment rather than lease. You have to choose right kind of setup, nothing fancy, basic set which you can afford. Then you have to get pricing to the right level, do some advertisement and people will come. When you have some income flowing, you need to find right kind of gym related products to sell you customers, clothes, supplements etc. which you must buy with the lowest price to get best possible turnover from the deal. So now you have gym with steady income, bunch of people and you start to earn some money. You keep the place clean and tidy, make friends with the customers and if you play your cards right, you end up to having people waiting in line to get in the gym.
That is when you move bigger and better location near by, so you can keep all the customers and get some more. All the gyms existing after 10 years of business, has grow to be what they are. All the gyms which meant to be big by the start, has change owner year by year or fade away. You have to start low and climb with patience, and you may get there, but still you have do everything right. If you price is too high, people choose more inexpensive gym, and you loose customers. If you price is too low, you don't earn but you pull in trash who can't behave and lower your place to be ghetto gym. You have to have right price for the right people, clear rules for customers and so on. No discount of from any price without the really good reason. You can put up some membership-system and tie all discounts through that. With membership and discounts you can pull in some competitive bodybuilders, and by them, you can reach new customers. While doing all this, you buy new equipment with your income by the need arises from the opinion of the customers. When this new location seem to bee too crowded, it is time to find bigger and better location. Moving gym from place to place is cheap compared to price of empty space, if you go too big location too soon.