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Monday, 28 March 2011

Total Fitness denies CVA rumours

Graham Hallworth, the chairman of Total Fitness, which has a chain of 20 Gyms, has told the online news service, the Business Desk, that it is "definitely not" looking at a Company Voluntary Arrangement (CVA) process as part of its restructuring despite some press reports.  He went on to say that "It's true that we pulled out of a club in Lancaster last week, but that was just because we couldn't agree terms with the landlord."

The Gym chain closed 3 clubs last week in Ireland as the state of the economy meant they were losing money and the landlords were not prepared to lower the rents Graham Hallworth said.

Graham Hallworth became chairman of Total Fitness following a pre-pack administration deal last October.
He said that the restructuring exercise embarked upon since had looked at all of the business's overheads - of which rent is a substantial part.

In a conciliatory statement Graham said that he was not going to use a CVA, like JJB Sports, to shed liabilities but was going to talk to landlords as rent was a substantial cost for them. 

Gyms have been struggling recently as many people have cut back on memberships as their disposable income falls.  However Gym operators have tried to lure customers with ever cheaper membership fees.  Some offering membership at £20 a month, with no contract.

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