Is Fitness First effectively about to go bust? It seems the UK's leading gym operator cannot pay its bills and is to enter into a Company Voluntary Agreement or CVA. According to the Daily Telegraph at least 750 Fitness First jobs are at risk of closure as the company is attempting to reduce the rent it pays on 81 or its UK fitness clubs. The CVA is being handled by KPMG. A CVA is a highly controversial technique used to drive down the costs of companies in financial difficulty. It is clear from the figures quoted in the Telegraph article that Fitness First intends to pay no more than 28p in the pound due to the creditors involved.
I am a former member of Fitness First Ashford. I left following a dispute. I have since seen a letter that confirms my suspicion that the Ashford club is targeted for closure. The landlord of Fitness First Ashford's car park has been clamping down on parking. Time allowed for parking has recently been reduced to 2 hours. Given the obvious risks involved in membership payments not being honoured if the club was to suddenly close, perhaps members of Fitness First Ashford should consider their position.
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