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fibodo Limited
fibodo Limited
fibodo Limited
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

Exclusive: LA fitness ‘premiumising’ London and looking to grow

LA fitness has outlined plans for growth and potential future investment as the operator confirms it is nearing the end of its CVA process.

Speaking exclusively to Health Club Management, LA fitness CEO Martin Long confirmed that, of the 33 clubs originally earmarked for disposal, 18 have since been sold and an additional five landlords have found new tenants, including the site in Chester which is now trading under the Nuffield brand. Agreement is due to be reached on the final nine or 10 clubs by the end of this month, with some due to transfer to new owners as early as this week. One club – Bedford Park – will close on Friday (14 November) of this week.

The remaining clubs – of which there will be “approaching 50 once everything is tied up by the end of the month” – will be predominantly in London and the south-east. And this core group of clubs has performed well, in spite of “significant disruption” to the estate since the CVA was announced in March, with joiners up 10 per cent and revenues up 4 per cent.

Capital will begin to be released to the entire estate at the end of Q1 2015, with all clubs due to receive investment – including completing the roll-out of LA fitness’ new Primal functional training zones and programming.

In addition, throughout the course of 2015, a further seven of the 13 central London clubs will be upgraded and rebranded to the LAX by LA fitness brand – the operator’s premium offering. These will join the existing three LAX clubs – St Botolph’s in the City of London, South Kensington, and London Wall, which is due to be relaunched as LAX in the first half of December.

“We’re ‘premiumising’ our offering in London,” confirmed Long. “At this stage I don’t plan for any more than 10 LAX clubs in total, all in prime London locations. However, even those clubs that remain under the LA fitness brand will be brought up a level in terms of their offering.

“In 2015 most of the investment will be within the M25, but the entire estate will have received a facelift by January 2016.”

There are also plans for growth going forward. “I would like to be able to open new clubs, including experimenting with new formats,” said Long. “Our shareholders are currently the banks that have seen us through the CVA, and they’ve been fantastic supporters, but they aren’t the long-term holders of the business. We have a lot of resources available for stage one of our plans, but at some point during 2015 or 2016 we’ll be looking for new investors to help us accelerate our plans and grow.”

“We’re quietly optimistic about 2015,” he concluded. “We’ve retained all the best clubs, we’ve cleared up the financials, we’ve kept the morale of our team up and we’re left with a business that’s performing well. Having fewer clubs allows us to spend more time thinking about the nuances and focusing on each club a bit more.”

LA fitness has outlined plans for growth and potential future investment as the operator confirms it is nearing the end of its CVA process.
HAF,FIT,IND,PHR
792955_665805.jpg
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News

Exclusive: LA fitness ‘premiumising’ London and looking to grow

LA fitness has outlined plans for growth and potential future investment as the operator confirms it is nearing the end of its CVA process.

Speaking exclusively to Health Club Management, LA fitness CEO Martin Long confirmed that, of the 33 clubs originally earmarked for disposal, 18 have since been sold and an additional five landlords have found new tenants, including the site in Chester which is now trading under the Nuffield brand. Agreement is due to be reached on the final nine or 10 clubs by the end of this month, with some due to transfer to new owners as early as this week. One club – Bedford Park – will close on Friday (14 November) of this week.

The remaining clubs – of which there will be “approaching 50 once everything is tied up by the end of the month” – will be predominantly in London and the south-east. And this core group of clubs has performed well, in spite of “significant disruption” to the estate since the CVA was announced in March, with joiners up 10 per cent and revenues up 4 per cent.

Capital will begin to be released to the entire estate at the end of Q1 2015, with all clubs due to receive investment – including completing the roll-out of LA fitness’ new Primal functional training zones and programming.

In addition, throughout the course of 2015, a further seven of the 13 central London clubs will be upgraded and rebranded to the LAX by LA fitness brand – the operator’s premium offering. These will join the existing three LAX clubs – St Botolph’s in the City of London, South Kensington, and London Wall, which is due to be relaunched as LAX in the first half of December.

“We’re ‘premiumising’ our offering in London,” confirmed Long. “At this stage I don’t plan for any more than 10 LAX clubs in total, all in prime London locations. However, even those clubs that remain under the LA fitness brand will be brought up a level in terms of their offering.

“In 2015 most of the investment will be within the M25, but the entire estate will have received a facelift by January 2016.”

There are also plans for growth going forward. “I would like to be able to open new clubs, including experimenting with new formats,” said Long. “Our shareholders are currently the banks that have seen us through the CVA, and they’ve been fantastic supporters, but they aren’t the long-term holders of the business. We have a lot of resources available for stage one of our plans, but at some point during 2015 or 2016 we’ll be looking for new investors to help us accelerate our plans and grow.”

“We’re quietly optimistic about 2015,” he concluded. “We’ve retained all the best clubs, we’ve cleared up the financials, we’ve kept the morale of our team up and we’re left with a business that’s performing well. Having fewer clubs allows us to spend more time thinking about the nuances and focusing on each club a bit more.”

LA fitness has outlined plans for growth and potential future investment as the operator confirms it is nearing the end of its CVA process.
HAF,FIT,IND,PHR
792955_665805.jpg

News

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This year's UK government Spending Review, announced in Parliament by chancellor Rishi Sunak on 25
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To the relief of the sector, the UK government confirmed yesterday (23 November) that gyms,
Closing gyms and leisure facilities during any possible future lockdown would be "unthinkable", according to
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The University of Stirling has opened its new £20m sports and fitness centre. The building,
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With January now close on the horizon your thoughts will be firmly focused on sales campaigns to attract new members through your doors in the new year rush.
Opinion: Sealing the Leaky Bucket – 7 Research-Based Tips for Retaining New Members in January 2021
Featured supplier news
Featured supplier: Frame launches new, streamlined digital offering, powered by Fisikal
When facing lockdown restrictions, Frame successfully adapted its in-club experience to an online offering for members.
Featured supplier news
Featured supplier: Anytime Fitness partners with Gympass across UK and Ireland
Anytime Fitness, the UK’s leading 24/7 high-spec gym operator, has partnered with Gympass to give its corporate members access to over 170 clubs across UK and Ireland.
Company profiles
Company profile: fibodo Limited
fibodo is the digital solution helping people lead healthier and happier lives. From grassroots individual ...
Company profiles
Company profile: Safe Space Lockers
Safe Space have over 25 years of experience in the UK leisure and fitness industry, ...
Supplier Showcases
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Catalogue Gallery
Click on a catalogue to view it online
Directory
Skincare
Sothys: Skincare
Spa software
SpaBooker: Spa software
Locking solutions
Monster Padlocks: Locking solutions
Member feedback software
AskNicely: Member feedback software
Design consultants
Zynk Design Consultants: Design consultants
Management software
fibodo Limited: Management software
Direct debit solutions
Harlands Group: Direct debit solutions
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Wearable technology solutions
MyZone: Wearable technology solutions
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
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Waltham Abbey, Essex
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Diary dates
27-28 Nov 2020
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Diary dates
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Diary dates
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ExCeL London, London, United Kingdom
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tbc, Dunedin, New Zealand
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