The Dunedin Gymnastics Academy has been left with nowhere to train, or equipment, after health and safety tests last week revealed traces of asbestos in its gym.
The academy, which has more than 600 members, might have to write off $150,000 worth of equipment because the asbestos contamination wasn't covered by insurance.
It has put its classes at the venue on hold until a new venue is found or the risk eliminated.
Director Carmel Leslie said it was major blow at the start of the competition season.
"The problem is it's not sudden or one-off event - we'd have to prove that was the case, and my guess is this has happened over a period of time. Also, our landlord is not insured for asbestos."
The academy was fundraising to replace the lost equipment, she said.