Fitness First in refinancing race as debt reaches 550m
Race against time: Fitness first is looking to renegotiate its 550m debt
Fitness First faces a race to refinance its debts after its private equity owners ousted the company’s top management.
BC Partners axed key board members and installed Chris Stone, who cut his turnaround teeth at Northgate Information Solutions, in the chief executive’s seat.
Former boss Colin Waggett, finance director Duncan Tatton-Brown and UK managing director John Gamble were all relieved of their posts.
Fitness First, which runs more than 140 UK clubs and 300 further afield, needs to renegotiate the financing behind its 550m debt mountain.
That follows the revelation that a number of gyms and fitness centre
chains are to investigated by the Office of Fair Trading after
accusations that customers are being unfairly locked into lengthy
contracts and pursued by aggressive debt collectors.
The OFT is concerned that some gyms may be imposing unfair contract terms by making it difficult for members to end contracts.
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