TJS Services is a leading national facility services provider. We deliver quality cleaning, maintenance, construction and facility management services to over 1,500 sites Australia wide. Our…read more
Takeover of Fitness First’s UK clubs could prompt carve up of global chain
A potential takeover of Fitness First's clubs in the United Kingdom by sports retailer and rival fitness club DW Sports operator could lead to a carve up on the chain's global operations.
In March this year, Fitness First’s global owner Oaktree Capital Management mandated HSBC to advise on options for the global operator, which includes more than 300 clubs in Australia, the United Kingdom, Germany, India and South East Asia along with licensed operations in the Arabian Gulf.
Eager to expand, DW Sports is currently discussing a buyout worth £70 million (AU$120 million) to create a 140-strong gym.
The sale of the UK business would mark the first step in the long-expected break up of Fitness First’s global empire.
The group, which came close to collapse in 2012, has been transformed in recent years.
At the height of its difficulties is had around £600 million in debts and in the UK was forced to undertake a Company Voluntary Arrangement, a type of insolvency that companies turn to when faced with administration. Since then, it has sold-off a clubs, revamped existing sites and started to open new locations.
It currently has 319 gyms, including 67 in Australia, 84 in Germany, 87 in Asia and eight in India.
Oren Peleg, Fitness First’s global Chief Executive told UK-newspaper The Sunday Telegraph, “the success of the transformation has meant that people have started to pay attention to the business and it has been approached by a number of parties who have expressed interest.”
Peleg said businesses in the UK and Australia are now enjoying robust growth while in Asia, growth is mainly being driven by the opening of new clubs.
The turnaround has been driven by a £200 milion (AU$345 million) investment program that delivered distinct premium fitness experiences, differentiating Fitness First clubs from budget and 24/7 gyms.
In Australia, IBISWorld estimates Fitness First had $260 million revenue in the 2015/16 financial year and 18.8% market share, ranking as the largest player behind Anytime Fitness Australia (19.3%) and larger than Ardent Leisure's Goodlife business (13.4%).
Image: Fitness First' Bond Street, Sydney club
8th April 2016 - OWNERS LOOK AT SALE OF FITNESS FIRST’S GLOBAL OPERATIONS
24th January 2016 - FITNESS FIRST MARKS 10 YEARS IN THE MIDDLE EAST
10th September 2015 - QUIKSILVER FILES FOR BANKRUPTCY IN THE USA
23rd June 2015 - FITNESS FIRST TO INVEST $20 MILLION IN AUSTRALIAN CLUBS
22nd January 2014 - FITNESS FIRST AUSTRALIA REVEALS NEW APPROACH TO FITNESS
We hope that you value the news that we publish so while you're here can we ask for your support?
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
Aflex Inflatables are the leaders for obstacle courses, pool toys, waterparks and land-based watersides and fitness runs. They are industry leaders offering the widest range of pool, lake and beach…read more
As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd. 19th July 2018 - ENTA AUSTRALASIA REBRANDS AS VIVATICKET 17th October 2016…read more
Gladstone Health & Leisure (Gladstone MRM Pty Ltd Australia) is a leading supplier of leisure management and fitness software and is endorsed by leading health and fitness professionals and…read more
Principal Consultant Simon Weatherill has spent the last 20 years developing the world renowned Melbourne Sports Hub, as former Chief Executive Officer of the State Sports Centres Trust…read more
Smart Connection Consultancy is a boutique sport and recreation consultancy who has become one of Australia’s leading advocates for the use of synthetic sports surfaces as a vehicle to grow…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!