Wednesday, June 20, 2012
Norwich’s Fitness First Gym in Riverside is to transfer to a new operator following a deal by its owners to tackle its debts.
The chain, which employs 1,500 staff in the UK, secured backing for a company voluntary arrangement (CVA), which will allow an overhaul of the company’s leases to go ahead. The restructuring will see 67 of the company’s 147 UK gyms, including Riverside in Norwich, transferred to other operators within the next six months and in the meantime rent on these gyms will be reduced to 55pc. Remaining clubs will continue to operate under the Fitness First brand.
Professional services firm KPMG, which supervised the CVA, said the majority of the group’s landlords voted in favour of the proposals, which will give returns of up to 28p in the pound compared to just 0.5p in an administration.