Fitness First cutting the fat

My old apartment complex had a Fitness First downstairs.

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So it made sense to take a membership at the gym.

After a few years, I needed a change of scenery to inspire me, so I made a switch to another, more community-based gym.

The decision to change was easy. The process of closing my membership wasn't.

Emails were sent. Phone calls made. Face to face chats with staff had. The process probably took a couple of weeks.

It was a common experience.

Fitness First says it recognised some members did have difficulty cancelling their memberships, but could now easily cancel by email.

Has it come too late?

Fitness First Group, the UK- based parent company of Fitness First Australia has been struggling under a $890million mountain of debt.

The business is being restructured globally, transitioning to new owners Oaktree and Marathon.

Part of that deal means, 24 of its 97 Australian operations will be sold.

Local managing director, Pete Manuel said the clubs shutting down are the ones that don't fit the company's vision for the brand.

He added that a condition of sale will be that all member and staff rights are preserved.

At this stage, Fitness First expects memberships in clubs which are sold will be transferred to the new club owner.

But more will be known over the next four weeks, after the sale process begins.

The company adds that as a result of the restructure, it will have the strongest balance sheet in the industry allowing for improvements in existing clubs, and even the opening of new sites.

There's no doubt competition in the industry is hotting up.

Fitness First grew rapidly with its aggressive push for membership resulting in the closure of a number of long standing gyms, especially in Sydney.

But over the past 12 months especially, a new generation of cut- price 24 hour gyms have surfaced gaining market share and popularity.

What do you think? Has the Fitness First brand been tainted too much for a restructure to win back health nuts?

Gyms being sold include:





NSW: Five Dock, Granville, Tuggerah, Pennant Hills, Lane Cove, Kotara, Wollongong, Norwest, Campbelltown

VIC: Epping, Nunawading, Chadstone Platinum, Highpoint, Malvern East, Essendon

QLD: North Quay, Southport, Springwood, Mt Gravatt, Jindalee

SA: Holden Hill, Hindmarsh, Marion

WA: Balga


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3 min read

Published

Updated

By Ricardo Goncalves
Source: SBS

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Fitness First cutting the fat | SBS News