The largest health club group in the world - Fitness First - is said to be close to being rescued by a private investment fund

Sunday, March 18, 2012 8:58 PM

THE largest health club group in the world - Fitness First - is close to being rescued by a private investment fund as it buckles under a 550 million debt burden.

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The gym chain, which employs 13,000 people and has 1.2 million members worldwide, is set to fall under the control of Oaktree Capital, the Mail on Sunday said.

Oaktree, which has reportedly been buying up the chains debt and now owns more than a third, is in talks with Fitness Firsts private equity backers BC Partners over a debt-for-equity deal.

Fitness First, which has 430 clubs worldwide, including 140 in the UK at locations including Colchester and Chelmsford, recently warned that it was unlikely to make an 18 million interest payment due this month.

Read more from the original source:
Fitness First poised to be saved through debt-for-equity swap