Thu, 21 Jun 2012 | DIVISION SALE
Fitness First has escaped administration after its landlords agreed to reduce their rent bills by over 70 per cent.
KPMG has guided the chain into a CVA, which will enable it to pay between 23p and 28p for every £1 that it owes. If it had gone into administration this repayment figure would have been just 0.5p.
The gym chain will sell 67 of its UK sites and have about £600 million of its debts wiped out. It is expected that easyGym will purchase a large chunk of these sites.
Another 79 gyms will be granted rent reductions with some of the biggest landlords gaining a stake in the business in return.
Barry Gross of law firm Berwin Leighton Paisner commented to the Guardian on the deal, “This is good news for the high street and gives more options to retailers to help them avoid administration.
"The biggest issue facing the retail market generally is that rents are high and in difficult trading conditions there is nothing they can do because it is a fixed cost. But if more retailers use these kind of CVAs, which is likely after its success at Fitness First, it should avoid future administrations – which are far more costly.”
The company is an automatic and industrial door supplier, installing a variety of systems, including but not limited to, automatic doors, fire resistant shutters, entrance barriers, roller shutters and garage doors.
Well-established company operating for over 23 years. Offers a range of driving positions, which include day runs, local runs, local shunting, nights out and tramping.
The company is a business-to-business wholesaler of cask ales, continental lagers, and craft cider. Since its establishment, the business has cultivated strong relationships with high-profile and local breweries, gaining exclusive access to their pro...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.