Fitness First has secured approval for its CVA plan

Wednesday, June 20, 2012 3:44 PM

HEALTH clubs group Fitness First was thrown a lifeline today as creditors waved through a last-ditch bid to tackle its burgeoning debt pile.

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The chain, which employs 1,500 staff in the UK, secured backing for a company voluntary arrangement (CVA), which will allow an overhaul of the companys leases to go ahead.

The restructuring will see 67 of the companys 147 gyms in the UK transferred to other operators within the next six months and in the meantime rent on these gyms will be reduced to 55%. Remaining clubs will continue to operate under the Fitness First brand.

Fitness First, which has around dozen gyms in the East of England, at locations including Colchester and Chelmsford, recently secured a deal with most of its lenders to convert debt into equity, but this is dependent on the CVA being agreed in three weeks.

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National: Fitness First secures lifeline as creditors approve CVA plan