Fitness First blames home working for slow recovery

FITNESS FIRST has blamed working from home for its struggles to lure people back to inner city gyms.

The chain said recovery from the pandemic had been “slower than anticipated” after membership was “decimated” by lockdowns.

Fitness First took £33.2m in membership fees last year, newly filed accounts show, compared to £50.8m in 2019. The cost of a full membership varies from club to club, ranging from £109 a month for access to its Baker Street club to £42 a month at its Brighton branch.

“The return of city workers, especially in central London, has been slower than anticipated,” finance director Anthony Riley wrote in the company’s accounts. “As the majority of the company’s gyms are city centre based within close proximity to offices, the change in behaviour has been particularly impactful.”

It comes as many continue to work at least part of the week from home post-pandemic, despite concerns about the impact on productivity and growth.

Mr Riley wrote in the accounts: “The reduction in revenue across the gym portfolio is considered to be an ongoing risk to the company.”

Fitness First embarked on a formal restructuring process last April, announcing plans to shut gyms and negotiate rent cuts with landlords in a bid to put the company’s finances on a more sustainable footing. The plan was approved by the High Court in June despite a challenge from landlords.

Nine gyms have been shut since then, with six of them in London.

They include central locations such as Holborn and Aldwych near the Strand, as well as a gym in Spitalfields near the City.

Justin Musgrove, the company’s chief executive, added: “Fitness First has completed its restructuring and now has a stable estate of 28 clubs.”

Fitness First, which is owned by Dave Whelan, the former owner of Wigan Athletic Football Club, made a pre-tax profit of £5.2m in the 12 months to March 2023, accounts show. It rebounded from a loss of £8.8m in the prior year.

The number of members rose by 21pc over the period.

Mr Musgrove said: “The company continues to show encouraging signs of recovery following a challenging few years and is now actively looking at opportunities to expand our estate.”

He said Fitness First was trying to attract new members by offering appbased workout classes and adding more weights to its gyms as people increasingly focus on strength training.