Member Article

Gym chain slims down with sale of 33 clubs to reduce debt

National gym chain LA Fitness has announced a major restructuring plan that will see it sell 33 of its 80 clubs.

The move is being staged in conjunction with a Company Voluntary Agreement with its landlords that will revise lease terms at a number of clubs that will alleviate £250 million debt.

LA say the restructuring will have no immediate impact on the day-to-day running of the business for members, employees, suppliers or trade partners.

The firm say it expects the majority of existing employees to continue employment with the new owners under a TUPE structure.

LA fitness CEO Martin Long said: “LA fitness is a strong brand that is valued by its members. We have had a good start to 2014 and our membership numbers are up year-on-year.

“It is a structural issue that is hampering LA fitness and it is through this process that we will create a leaner, more operationally efficient business, with a long-term, sustainable future as one of the UK’s leading health and fitness operators.

“Importantly, we will have the financial strength and operational flexibility to continue investing in facilities, equipment and technology across our retained portfolio of clubs to enhance the experience for our members.”

This was posted in Bdaily's Members' News section by Tom Keighley .