Partly Cloudy

Partly Cloudy

max temp: 16°C

min temp: 8°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

Frank Brumby, eastern region chairman of R3.

The East of England’s struggling companies should be given some breathing space to help them come up with a recovery plan, an insolvency body argues.

Morrisons saw like-for-like supermarket sales grow by 0.7% during the first quarter of this year.
Photo: Sean Dempsey/PA

Supermarket chain Morrisons today reported a 0.7% increase in like-for-like sales during the first quarter of this year as its turnaround under chief exectuvie David Potts continued.

Gavin Patterson,  BT chief executive.

BT has unveiled a £6billion programme to upgrade its network in a move to extend ultrafast broadband to at least 10million homes and businesses, and lay fibre optic lines to around two million premises across the UK.

Eliza Jones of Chosan, left, at her stand.

A Colchester entrepreneur has taken inspiration from her African heritage to launch a range of organic drinks.

Shell has seen profits plummet.

Shell’s first-quarter profits plummeted 58% to 1.6 billion US dollars (£1.1 billion) as the falling oil price continues to hammer the sector.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24