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Viva Leisure sheds more than 1,000 staff in 48 hours

Viva Leisure sheds more than 1,000 staff in 48 hours
March 26, 2020

Leading fitness facility operator Viva-Leisure has been forced to stand-down or let go more than 1,000 staff members in a 48 hour period this week as Government measures to halt the spread of the Coronavirus halted the operations of fitness clubs, gyms and indoor sports centres across the country.

In a Stock Market update, the Canberra-based company advised on its current progress and future operations following, as Viva Leisure Managing Director and Chief Executive, Harry Konstantinou explained “the decision by Government to force close all gyms in Australia with no idea on when they will reopen”.

Writing on LinkedIn, Konstantinou stated “this week our team went from 1,050 staff members, to 42, in 48 hours.

“We simply have no work for the 1,000+ staff that we had to stand-down or let go. These are staff members who have worked their hearts out for the company and have helped many hundreds of thousands of others live a healthier, happier and more active lifestyle. These real people have had the world come crushing down on them, not because something they have done, and not because something management at Viva Leisure has done, but because of the actions of Government.”

Referring to US President Donald Trump's comment that 'we cannot let the cure be worse than the problem itself', Konstantinou (pictured) continued “it is important to save lives, but (the Government has) now ruined the economy for five+ years. Unemployment will rise to over 11% if Westpac is correct in their estimations, and 800,000+ jobs lost, including significant amount of small businesses.”

Viva Leisure's market announcement, charts how the group, which operates the Club Lime, hit republic and GroundUp brands, has faced the Federal Government's Coronavirus restrictions over the past week, closing its facilities on 23rd March.

It shows how visits to its clubs began to fall in the second week of February and how, with 96,402 members as of 29th February, 89,077 have had their memberships suspended automatically, while 7,968 have requested voluntary suspension.

It also shows how the group is adapting with its Club Lime LMOD (Les Mills on Demand) and Club Lime Workouts on Demand apps, as well as with live classes broadcast via Facebook live and YouTube.

These services cost $4 a week and Viva Leisure forecasts that 50,000 members will take up the offer while facilities remain closed.

As of the beginning of March, Viva Leisure operated in 75 locations, with 21 sites set to open and 12 locations under negotiation

On his LinkedIn message, Konstantinou concluded “stay positive people, I know someone out there must know what they are doing.”

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18th March 2020 - Fitness Australia’s Barrie Elvish says ‘gyms do not need to close’

2nd March 2020 - Viva Leisure reports ongoing growth and reveals new boutique brand

14th February 2020 - Viva Leisure opens new sites and completes Fit n Fast Health Clubs acquisition

17th December 2019 - Further growth for Viva Leisure with enhanced keyless club entry and launch of dedicated DAB+ radio station

2nd December 2019 - Viva Leisure looks to raise new capital as it announces acquisition of 13 Fit n Fast clubs

12th November 2019 - Viva Leisure expands Queensland operations with addition of two more Healthworks clubs

16th October 2019 - Viva Leisure enters Queensland market with acquisition of eight Healthworks Fitness Centres

28th August 2019 - Viva Leisure 2018/19 financial results exceed prospectus forecasts

8th August 2019 - Viva Leisure launches new app to offer keyless entry into clubs

25th July 2019 - Canberra’s Project Fitness Group to transition to HIIT Republic brand as it joins Viva Leisure stable

22nd July 2019 - Viva Leisure follows ASX listing with acquisition of Fitness 24/7 clubs

8th June 2019 - Investors welcome Viva Leisure’s ASX listing

10th May 2019 - Viva Leisure lodges prospectus and application for ASX listing

7th May 2019 - Viva Leisure opens three boutique fitness spaces in Tuggeranong precinct


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