Sunday Times

STRONG-ARM TACTICS

Planet Fitness gets physical Virgin Active

- ADELE SHEVEL

PLANET Fitness, the country’s secondlarg­est gym operator, has accused rival Virgin Active of “bullying” and anti-competitiv­e behaviour in preventing it from accessing sites for new gyms.

It is a case rich in irony, given that Richard Branson’s Virgin brand was built on taking on establishe­d companies as the gutsy challenger in industries from music to hotels and airlines.

Virgin’s motif has been to shake up industries as the outsider tackling entrenched operators and fighting the establishm­ent.

But in South Africa, Virgin has been the biggest gym operator for well over a decade after it stepped in to bail out the Health & Racquet gyms after owner Leisurenet went bust.

Rory Sweetlove, MD at Planet Fitness, said it laid a complaint with the Competitio­n Commission. “We haven’t had feedback yet. Until such time as we do, we don’t feel comfortabl­e talking about it.”

Planet Fitness founder Manny Rivera said it was in the hands of the commission. “The matter is sub judice, but it is for anti-competitiv­e behaviour.”

However, insiders say the case revolves around the claim that after Planet Fitness identifies sites Virgin Active allegedly approaches the landlords and pressures them not to lease them to its rival.

If the case is heard at the Competitio­n Tribunal, it will provide rare insight into a cut-throat industry.

Recently, Virgin Active and Planet Fitness launched new “no-frills” gym facilities, while simultaneo­usly launching new top-end gyms for the wealthy.

Virgin’s gym at the high-end Melrose Arch shopping precinct is being upgraded at a cost said to be R20-million. It has also launched a new premium club in Alice Lane in the commercial hub of Sandton. This Sandton club will open at the end of the month, and will be Virgin Active’s 108th in South Africa, catering for about 600 000 members.

Planet Fitness has 23 clubs and 160 000 members up from 125 000 two years ago.

Both companies plan to expand north of South Africa’s border into the continent.

There is no guarantee yet that the case will proceed to a hearing at the tribunal. The Competitio­n Commission will investigat­e before deciding whether to prosecute.

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 ??  ?? GIANT SLAYER: Planet Fitness wants competitio­n authoritie­s to investigat­e bigger rival Virgin Active’s alleged pressure on landlords
GIANT SLAYER: Planet Fitness wants competitio­n authoritie­s to investigat­e bigger rival Virgin Active’s alleged pressure on landlords
 ?? Picture: ALON SKUY ?? GOLIATH: Virgin Active has been accused of anti-competitiv­e behaviour
Picture: ALON SKUY GOLIATH: Virgin Active has been accused of anti-competitiv­e behaviour

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