Partly Cloudy

Partly Cloudy

max temp: 22°C

min temp: 15°C

ESTD 1874 Search

East Anglia: Gym chain LA fitness to press ahead with sale of clubs in Bury St Edmunds, Colchester, Cambridge and King’s Lynn

12:23 25 March 2014

LA fitness is to sell off 33 gyms, including sites in Bury St Edmunds, Colchester, Cambridge and King

LA fitness is to sell off 33 gyms, including sites in Bury St Edmunds, Colchester, Cambridge and King's Lynn.

Archant

Gym chain LA Fitness is to press ahead with a restructuring plan that will see it offload 33 clubs, including sites in Bury St Edmunds, Colchester, Cambridge and King’s Lynn, in a bid to slash debts by £250million.

shares

A vote of creditors, including landlords, supported revised lease terms at a number of clubs under a Company Voluntary Arrangement (CVA).

It means the Doncaster-based firm can refocus on a smaller portfolio of 47 clubs and secure new lending facilities worth £40million.

Without creditor support for the CVA, business advisory firm Deloitte warned the company faced the threat of administration.

A marketing exercise has now been started and expressions of interest have been received for all 33 clubs that the group is selling.

Chief executive Martin Long said the moves would create a “leaner, more operationally efficient business” with the flexibility to continue investing in facilities, equipment and technology.

The company said the proposals will have no immediate impact on the day-to-day running of the business and that the clubs it plans to sell as part of the CVA will continue to operate as normal in the near-term.

Under the proposals, a total of 31 clubs and the group’s Doncaster head office have been retained at current rents, which will be paid monthly rather than quarterly for a period of two years.

A further seven clubs will be retained but with rent reduced to 60% of current levels. Nine clubs were not part of the CVA and will not be affected. The rent on the 33 clubs up for sale has been reduced to 45% of current levels for up to six months.

The company is owned by management and a number of banks, having been part of private equity firm MidOcean Partners since 2005.

It has 1,500 full and part-time employees, as well as a further 1,000 staff who work on contractual basis, such as class instructors.

shares

0 comments

The Adnams brewery in Southwold.

Southwold-based Adnams today reported a 12% increase in first half profits to £962,000.

The Treasury has sold the first tranche of shares from the taxpayer-owned stake in the Royal Bank of Scotland Group.

The Treasury has sold the first tranche of shares in Royal Bank of Scotland for £2.1billion, but the taxpayer has made a loss of around £1bn on the sale.

Stansted Airport, part of the Manchester Airports Group.

Independent management, design and construction consultancy Pick Everard is set to expand into the aviation sector.

Millions have been paid to passengers since 2012

There was a £900,000 increase in the amount paid to delayed passengers in just one year – from £1.4m in 2013/14 to £2.3m in 2014/15.

The new branding for Tarmac following its acquisition by CRH.

Iconic contruction brands Tarmac and Blue Circle have been combined to create a UK leader in the building materials sector.

Natasha Davies, Tom Holloway, Ollie Prescott, Rachel Wilby and Omar Khattab, the five new appointments at Cloud Media Insight.

Ipswich-based media monitoring and analysis firm Cloud Media Insight has appointed five new executives.

Anne Holt of Baker Tilly.

East Anglia’s many ports and logistics businesses are being advised to prepare for new European Union customs duty arrangements which come into force next year.

Alan Cowie, communications and events officer at the| New Anglia Growth Hub.

New Anglia Growth Hub is to host a funding workshop, bringing together five providers of business support under one roof.

The Birketts Tour de Wellbeing cycle team, from left, Matthew Potter, Ben Burt, Jolyon Berry (front) Greg Jones and Tom Shape.

Members of the employment team at regional law firm Birketts raised more than £1,000 for Breast Cancer Care by taking part in the Tour de Wellbeing virtual cycle race, held by EMCOR UK to coincide with the Tour de France.

A plane in Flybe's latest purple livery.

Regional airline Flybe has confirmed its 2015-16 winter schedule to and from Stansted.

Most read

Most commented

Topic pages