Private equity-backed gym chain LA fitness has decided to sell 33 of its 80 club to reduce its debt pile.
LA, which is based by private equity firm MidOcean Partners, said the restructuring plan will refocus it on a smaller portfolio of clubs and significantly reduce its debt burden. By £250m.
The company also said that it has asked its landlord Company Voluntary Arrangements to revise lease terms at a number of its clubs.
LA fitness CEO Martin Long said, “We have had a good start to 2014 and our membership numbers are up year-on-year.
“It is a structural issue that is hampering LA fitness and it is through this process that we will create a leaner, more operationally efficient business, with a long-term, sustainable future as one of the UK’s leading health and fitness operators.
“Importantly, we will have the financial strength and operational flexibility to continue investing in facilities, equipment and technology across our retained portfolio of clubs to enhance the experience for our members.”
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