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UNITING THE WORLD OF FITNESS
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.

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.

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

The Leisure Database Company (TLDB) has revealed its State of the Fitness Industry Report UK
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during
A new physical activity programme called Big Sister has been launched in the UK to
Go Fit has been selected by the United Nations Economic Commission for Europe (UNECE) as
Ness, a US startup that is developing a range of wellness-driven credit cards, has launched
Following a history of supporting US military and service members, F45 has announced a new
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Hyatt is piloting private gyms in five of its US hotels as part of its
A young girl has died following an incident at the David Lloyd gym at Capability
New fitness franchise, Circuit Society, has signed its first London location in Bayswater. The 3,000sq
Active Nottingham, part of Nottingham City Council, has released a children’s book called Can We
The new £42m Moorways Sports Village will open its doors to the public on Saturday
Fitness industry veteran Harm Tegelaars has returned to the fitness industry by joining the board
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Global fitness technology provider Virtuagym has raised a new €3m investment from Icecat, an Amsterdam-based technology company which invests in innovative technology organisations.
Featured supplier news
Featured supplier news: Core Health & Fitness launches Schwinn X and Z Bikes
Capitalising on Schwinn’s decades of experience and iconic leadership in commercial indoor cycling, Core Health & Fitness announces the arrival of its next generation of indoor cycling bikes – Schwinn X and Z.
Featured operator news
Featured operator news: Serco Leisure wins 10-year Mansfield contract
Following a competitive tendering process, Serco Leisure and its partner More Leisure Community Trust Limited (MLCT) have been awarded a 10-year contract by Mansfield District Council to operate three centres in the town, starting 1 May 2022.
Featured operator news
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As part of their work to break down the barriers that deter women and girls from participating in sport and physical activity, Everyone Active has teamed up with EMD UK to launch new exercise classes linked to the This Girl Can campaign.
Company profiles
Company profile: Indigofitness Ltd
We Create Training Spaces! We've been designing and delivering high quality training spaces for almost ...
Company profiles
Company profile: Peloton Commercial selling Precor kit
Precor has been a pioneer in delivering fitness experiences for commercial customers for more than ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Skincare
Comfort Zone - Davines S.p.A: Skincare
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Management software
Premier Software Solutions: Management software
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Salt therapy products
Himalayan Source: Salt therapy products
Wearable technology solutions
MyZone: Wearable technology solutions
Architects/designers
Zynk Design Consultants: Architects/designers
trade associations
International SPA Association - iSPA: trade associations
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
30-30 Jun 2022
The ICC, Birmingham, Birmingham , United Kingdom
Diary dates
12-13 Sep 2022
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Diary dates
25-28 Oct 2022
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Diary dates
25-28 Oct 2022
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