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Martin Long, CEO of DW Fitness First, says cash crisis is looming
POSTED 08 Apr 2020 . BY Liz Terry
Martin Long: a cash crisis is looming
Martin Long, CEO of DW Fitness First, has called on the government to speed up the payment of furlough support.

Long told the BBC that the business normally turns over £15m a month, but that this has fallen to zero, leaving no cash to fund the company's £3m wage bill in April. “The money isn’t coming in quickly enough,” he said.

Most of DW Fitness First's 3,000 staff have been furloughed, but Long says the government’s coronavirus job retention scheme won’t be set up in time to help.

The operator has an estate of 120 gyms across the UK. All are currently closed.

“Ultimately, you’ve got to run a business with no income and no knowledge of when the income is coming, because you don't know when you're going to reopen,” said Long.

“And even when you do reopen, it's likely you'll have fewer members.”

DW Fitness First had revealed plans to become "UK’s largest sports participation brand," integrating its retail and health club operations to create a seamless consumer service.

UKActive has said difficulties getting loans and delays in accessing the government’s coronavirus job retention scheme could mean more than a third of UK gyms and leisure centres collapse.

“We're just weeks away from the closure of up to 2,800 fitness and leisure facilities, which play a crucial role in supporting the health and wellbeing of our communities,” said CEO, Huw Edwards.

That would threaten 100,000 jobs in a sector worth £7.7bn a year to the UK economy.

UKActive said some gym and leisure centre operators may only survive another five weeks as rent bills continue to mount.

“If our leisure facilities are lost, it will be incredibly difficult to rebuild them and any recovery will be extremely slow and painful,” said Edwards.

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NEWS
Martin Long, CEO of DW Fitness First, says cash crisis is looming
POSTED 08 Apr 2020 . BY Liz Terry
Martin Long: a cash crisis is looming
Martin Long, CEO of DW Fitness First, has called on the government to speed up the payment of furlough support.

Long told the BBC that the business normally turns over £15m a month, but that this has fallen to zero, leaving no cash to fund the company's £3m wage bill in April. “The money isn’t coming in quickly enough,” he said.

Most of DW Fitness First's 3,000 staff have been furloughed, but Long says the government’s coronavirus job retention scheme won’t be set up in time to help.

The operator has an estate of 120 gyms across the UK. All are currently closed.

“Ultimately, you’ve got to run a business with no income and no knowledge of when the income is coming, because you don't know when you're going to reopen,” said Long.

“And even when you do reopen, it's likely you'll have fewer members.”

DW Fitness First had revealed plans to become "UK’s largest sports participation brand," integrating its retail and health club operations to create a seamless consumer service.

UKActive has said difficulties getting loans and delays in accessing the government’s coronavirus job retention scheme could mean more than a third of UK gyms and leisure centres collapse.

“We're just weeks away from the closure of up to 2,800 fitness and leisure facilities, which play a crucial role in supporting the health and wellbeing of our communities,” said CEO, Huw Edwards.

That would threaten 100,000 jobs in a sector worth £7.7bn a year to the UK economy.

UKActive said some gym and leisure centre operators may only survive another five weeks as rent bills continue to mount.

“If our leisure facilities are lost, it will be incredibly difficult to rebuild them and any recovery will be extremely slow and painful,” said Edwards.

RELATED STORIES
Loophole leaves gyms open to legal action by landlords


The legislation intended to protect commercial tenants from eviction during the coronavirus (COVID- 19) pandemic has a loophole, which could see hundreds of gyms and leisure centres being hit with legal action by their landlords.
Channel 4 comedian Rosie Jones mystery shopped gyms for accessibility – guess which operator passed the test


Comedian Rosie Jones has found that just one of the three gyms she tried to train at, for a Channel 4 consumer rights programme, offered adequate accessibility and/or facilities for disabled users.
MORE NEWS
Gymnation launches branded athleisure collection for men with muscle thobe and ghutra
In response to customer demand, Gymnation has unveiled a muscle thobe and ghutra range for Saudi men that celebrates Saudi culture as well as the region’s growing interest in fitness.
World Firefighters Games creates new opportunities for collaboration with the fitness sector
Italian Exhibition Group – the organiser behind industry events Dubai Active and Dubai Muscle Show – has been appointed to deliver the Health and Wellness Expo and Fire and Safety Expo at the 16th World Firefighters Games.
Planet Fitness deal hints at blueprint for global expansion
Private investment company, Franchise Equity Partners, has acquired Bravo Fit, the Planet Fitness franchisee in Australia, from existing shareholders.
Fitness First UK unveils makeover of Highbury club with new recovery and Pilates offerings
Fitness First UK has raised the bar with its latest refurbishment, in Highbury, London, as it continues to premiumise its estate.
Total Fitness research charts the fitness industry’s post-pandemic transformation
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