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Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

News

Bannatyne says impact of COVID-19 could be £30m

Duncan Bannatyne, CEO of Bannatyne Group, which runs spas, health clubs and hotels, says the coronavirus shutdown could cost the company £30m.

Speaking to Sky News on 7 April 2020, he said Bannatyne's bank – Royal Bank of Scotland – is supporting the business and that it will take on more borrowing under the government scheme to get through the crisis.

The company has furloughed 2,600 staff and has 400 still working. Bannatyne said it made up wages to 100 per cent in March, but that these would drop to 80 per cent thereafter. The senior team has taken a substantial pay cut. He was not asked about the impact of the shutdown on freelance staff.

The company has not paid its rent and has agreed with landlords to change to monthly, rather than quarterly, rent payments as soon as banking facilities kick in, to ease cashflow.

Bannatyne said the company will reopen all profitable sites once the shutdown is over, but will permanently shutter loss-making locations – he said he expected other operators to do the same, meaning the industry will inevitably see a shrinkage in the number of sites operating.

Members who had paid for the month of March but who lost days to the closures were being offered the chance to roll the lost days over - they have been 'very very good about it', he said.

The Bannatyne team is modelling the impact of both four- and six-month closures, so the company is prepared, he explained.

The prospect of reopening too early and having to close again would be hugely damaging, said Bannatyne, stressing the importance of timing reopening carefully.

Bannatyne took back the reins of the business last summer, following the departure of CEO Justin Musgrove, who left to take up a position in the Middle East with Leejam, the largest fitness operator in Saudi Arabia.

Bannatyne Group has a portfolio of 72 health clubs, 47 spas and four hotels, and reported a turnover of £127.5m in the year to December 2018 – its most recent results.

This figure represents growth of 8.5per cent on its 2017 results (£117.6m). Profit improved slightly, from £14.3m to £14.6m between the two years.

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Duncan Bannatyne, CEO of Bannatyne Group, which runs spas, health clubs and hotels, says the coronavirus shutdown could cost the company £30m.
HAF,FIT,IND,PTS,OPB,PHR
2020/THUMB345252_195747_460714.jpg
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News

Bannatyne says impact of COVID-19 could be £30m

Duncan Bannatyne, CEO of Bannatyne Group, which runs spas, health clubs and hotels, says the coronavirus shutdown could cost the company £30m.

Speaking to Sky News on 7 April 2020, he said Bannatyne's bank – Royal Bank of Scotland – is supporting the business and that it will take on more borrowing under the government scheme to get through the crisis.

The company has furloughed 2,600 staff and has 400 still working. Bannatyne said it made up wages to 100 per cent in March, but that these would drop to 80 per cent thereafter. The senior team has taken a substantial pay cut. He was not asked about the impact of the shutdown on freelance staff.

The company has not paid its rent and has agreed with landlords to change to monthly, rather than quarterly, rent payments as soon as banking facilities kick in, to ease cashflow.

Bannatyne said the company will reopen all profitable sites once the shutdown is over, but will permanently shutter loss-making locations – he said he expected other operators to do the same, meaning the industry will inevitably see a shrinkage in the number of sites operating.

Members who had paid for the month of March but who lost days to the closures were being offered the chance to roll the lost days over - they have been 'very very good about it', he said.

The Bannatyne team is modelling the impact of both four- and six-month closures, so the company is prepared, he explained.

The prospect of reopening too early and having to close again would be hugely damaging, said Bannatyne, stressing the importance of timing reopening carefully.

Bannatyne took back the reins of the business last summer, following the departure of CEO Justin Musgrove, who left to take up a position in the Middle East with Leejam, the largest fitness operator in Saudi Arabia.

Bannatyne Group has a portfolio of 72 health clubs, 47 spas and four hotels, and reported a turnover of £127.5m in the year to December 2018 – its most recent results.

This figure represents growth of 8.5per cent on its 2017 results (£117.6m). Profit improved slightly, from £14.3m to £14.6m between the two years.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Duncan Bannatyne, CEO of Bannatyne Group, which runs spas, health clubs and hotels, says the coronavirus shutdown could cost the company £30m.
HAF,FIT,IND,PTS,OPB,PHR
2020/THUMB345252_195747_460714.jpg

News

Chancellor Rishi Sunak's proposals to support the economy through the next six months of the
The UK government's 'Rule of Six' has come into force in physical activity facilities today
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A study by Rutgers University has suggested that it could be possible to predict which
Health club and gyms operators in California are suing state governor Gavin Newsom in an
The Global Wellness Summit (GWS) has announced the appointment of C. Victor Brick, CEO of
Hutchison Technologies
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Electronics giant LG has entered the fitness and wellness market with the launch of a
Exercise has been voted the number one way the public can help the NHS –
Hundreds of thousands of small companies in the UK – including those operating in fitness
Boutique gym attendance and class bookings in some world regions have bounced back to around
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COVID-19 is driving huge consumer interest in health, creating the opportunity for operators (with the right kit) to offer body scanning and analysis. We look at some of the top options
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Opinion
promotion
The pandemic has thrown a new focus on health, with sales of body composition analysis equipment at an all-time high, as InBody’s Francesca Cooper explains.
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Featured supplier news
Featured supplier: Speedflex develops new personalised HIIT programme to support the overweight getting into fitness
As the government announced its new obesity strategy to limit the impact of a potential second wave of COVID-19, HIIT specialists, Speedflex are also doing their bit to help tackle the issue.
Featured supplier news
Featured supplier: Supercharge your efforts to attract and retain members with Keepme
Keepme is an AI revenue acceleration platform created for the fitness industry. Blending Artificial Intelligence, operational tools, and a unique automations engine, Keepme supercharges and streamlines effort to attract, retain, and re-engage members.
Video Gallery
A new Zone is here
MyZone Group Ltd
A new zone is here for your club, for your members and for you. Read more
More videos:
Company profiles
Company profile: Octane Fitness
A global innovator of high-performance fitness equipment, Octane Fitness, a Nautilus, Inc. brand, continually redefines ...
Company profiles
Company profile: Focus Training
Focus Training is a leading provider of Active IQ and YMCA Awards certified Personal Trainer ...
Supplier Showcases
Supplier showcase - Digital gym floor
Catalogue Gallery
Click on a catalogue to view it online
Directory
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Fitness equipment
TRX Training: Fitness equipment
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Exercise equipment
EXF Fitness Equipment: Exercise equipment
Lockers/interior design
Fitlockers: Lockers/interior design
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Management software
fibodo Limited: Management software
Locking solutions
Monster Padlocks: Locking solutions
Trade associations
International SPA Association - iSPA: Trade associations
Fitness software
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Property & Tenders
11 - 25 Union St, London SE1 1SD
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