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Fitness First clubs to begin 24/7 operations

Fitness First clubs to begin 24/7 operations
October 25, 2016

The Fitness and Lifestyle Group’s planned acquisition of Fitness First Australia’s clubs is set to see a change in operations with some of the group’s 61 clubs set to have extended opening hours and 24/7 operations.

Former Goodlife Health Clubs Chief Executive Greg Oliver, who is managing the Fitness and Lifestyle Group’s operations, believes that longer opening hours will boost the competitiveness of Fitness First Australian clubs.

In the past 18 months 46 Goodlife clubs have extended their opening hours and there are plans for another 20 to make the switch.

In an exclusive interview on the Fitness and Lifestyle Group’s plans in the latest Australasian Leisure Management, Oliver explains "as we've gone through this (transition to 24/7 operations) our members' satisfaction has increased dramatically.”

Hypoxi weight management studios, which Goodlife bought into in 2014, are also to be introduced into Fitness First clubs.

Oliver adds “Hypoxi body shaping stores have done really well in Goodlife clubs and we expect they will be well patronised in Fitness First.

“If you consider a Fitness First club in Sydney, the addition of a Hypoxi studio as a product diversification strategy will broaden the club’s appeal to a new market who have previously struggled with traditional fitness and weight loss regimes.”

Today (25th October) has seen the Quadrant Private Equity group complete the purchase of Goodlife from the Ardent Leisure Group for a cash component of $230 million and a deferred consideration of $30 million in the form of a vendor loan repayable within two years.

The successful completion of Quadrant’s planned acquisition of Fitness First Australia will see an accelerated repayment of the $30 million

As previously announced, Ardent’s proceeds from the sale will be invested in its US-based family entertainment centres and its theme parks and bowling businesses.

Quadrant’s acquisition of Fitness First is currently being reviewed by the Australian Competition and Consumer Commission (ACCC).

However, with the Fitness and Lifestyle Group (which also includes Jetts 24/7 clubs) having a close to 8% share of the country’s fitness club market and around 16% of Australia’s fitness club members the ACCC .

The feature Does Quandrant measure up? is published in the September/October 2016 issue of Australasian Leisure Management.

Images: Fitness First (top) and a Hypoxi weight management studio (below).

22nd October 2016 - HYPOXI TO OFFER WEIGHT LOSS STUDIO FRANCHISE OPPORTUNITIES IN THE USA

29th September 2016 - QUADRANT EXPANDS WELLNESS EMPIRE WITH ACQUISITION OF FITNESS FIRST AUSTRALIA

19th August 2016 - ARDENT LEISURE SELLS GOODLIFE​ HEALTH CLUBS IN $260 MILLION DEAL

19th February 2016 - GOODLIFE HEALTH CLUBS BOUNCE BACK WITH 24/7 CLUBS PLUS NEW MARKETING AND MEMBERSHIP STRATEGIES

18th February 2015 - GOODLIFE BOLSTERS FULL-SERVICE OFFERING WITH 24/7 ANNOUNCEMENT

12th October 2014 - 24/7 FITNESS TREND SHOWS NO SIGN OF SLOWING


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