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Vivacity terminates contract with Peterborough council, citing £8m COVID-19 loss
22 Jun 2020 . BY Tom Walker
Vivacity manages eight leisure centres, 10 libraries, a theatre and a museum on behalf of Peterborough City Council
Photo: Vivacity
Leisure trust Vivacity, which terminated its contract with Peterborough City Council council last week, has confirmed it's lost £8m as a result of the COVID-19 pandemic.

Vivacity manages eight leisure centres with gyms, 10 libraries, a theatre and a museum – all owned by the council.

The trust was launched in 2010 and a recent independent study calculated that it contributes £60m of social value to the city every year.

A 90-day transition period has now been triggered, during which Vivacity will work with the council to transfer back the services. The council is expected to make a decision later this year on future delivery models.

The decision to terminate the contract was also partly due to Vivacity anticipating a "slow return to previous volumes of gym usage" within its centres.

"Gym usage drives the bulk of the income to support our range of services," Vivacity said in a statement.

"The leisure/fitness sector is widely predicting customer volume and revenue will be down by as much as 50 per cent, with recovery taking up to 18 months from the lifting of lockdown restrictions."

Stewart Francis, chair of Vivacity trustees, added: “This has been an extremely difficult and painful decision to make. We are devastated.

“Vivacity has been caught in a perfect financial storm. COVID-19 has switched off our revenues for 13 weeks already.

"There would be significant costs of re-opening and we are predicting a major loss of income as we implement social distancing and reduced capacities.

"This immediate shock comes alongside the well-publicised budget pressures of the council that have resulted in continued reductions in its contributions to Vivacity.

“Regrettably, given this combination of financial pressures, the Trustees cannot see a viable future that allows Vivacity to continue to deliver its charitable objectives to promote health and wellbeing and arts and culture in the city.

"We have concluded that the only option for Peterborough and for the charity’s employees is to give the notice to terminate the contract with the Council as of 18 June 2020.

“We will now work closely with the Council to support our employees as far as possible."

The decision comes just as the industry is about to hear news of a reopening date and a possible reduction on social distancing measures from 2m to 1m. The news is likely to come a week too late for Vivacity.


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PRODUCT NEWS
Vivacity terminates contract with Peterborough council, citing £8m COVID-19 loss
22 Jun 2020 . BY Tom Walker
Vivacity manages eight leisure centres, 10 libraries, a theatre and a museum on behalf of Peterborough City Council
Photo: Vivacity
Leisure trust Vivacity, which terminated its contract with Peterborough City Council council last week, has confirmed it's lost £8m as a result of the COVID-19 pandemic.

Vivacity manages eight leisure centres with gyms, 10 libraries, a theatre and a museum – all owned by the council.

The trust was launched in 2010 and a recent independent study calculated that it contributes £60m of social value to the city every year.

A 90-day transition period has now been triggered, during which Vivacity will work with the council to transfer back the services. The council is expected to make a decision later this year on future delivery models.

The decision to terminate the contract was also partly due to Vivacity anticipating a "slow return to previous volumes of gym usage" within its centres.

"Gym usage drives the bulk of the income to support our range of services," Vivacity said in a statement.

"The leisure/fitness sector is widely predicting customer volume and revenue will be down by as much as 50 per cent, with recovery taking up to 18 months from the lifting of lockdown restrictions."

Stewart Francis, chair of Vivacity trustees, added: “This has been an extremely difficult and painful decision to make. We are devastated.

“Vivacity has been caught in a perfect financial storm. COVID-19 has switched off our revenues for 13 weeks already.

"There would be significant costs of re-opening and we are predicting a major loss of income as we implement social distancing and reduced capacities.

"This immediate shock comes alongside the well-publicised budget pressures of the council that have resulted in continued reductions in its contributions to Vivacity.

“Regrettably, given this combination of financial pressures, the Trustees cannot see a viable future that allows Vivacity to continue to deliver its charitable objectives to promote health and wellbeing and arts and culture in the city.

"We have concluded that the only option for Peterborough and for the charity’s employees is to give the notice to terminate the contract with the Council as of 18 June 2020.

“We will now work closely with the Council to support our employees as far as possible."

The decision comes just as the industry is about to hear news of a reopening date and a possible reduction on social distancing measures from 2m to 1m. The news is likely to come a week too late for Vivacity.


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As countries around the world gear up to relax their lockdown rules, there remains a question mark over gyms and studios, which in many markets will be one of the last sectors to be given the green light.
myFitApp launches branded live-streaming as part of its COVID-19 support package
Innovatise, the company behind myFitApp, has announced the immediate availability of its customer- branded live-streaming solution.
EGYM presents Corona Gym Solution, for the successful re-opening of fitness studios
Finally, the time has come: fitness and health facilities around the globe are gradually resuming operations.
Bicester hotel opens purpose-built performance facilities to attract new target audience
The Bicester Hotel and Spa has launched purpose-built fitness and performance facilities to create a standalone, unique offering to attract a new demographic to the site.
EGYM launches digital functionality to help gyms adjust to a post lockdown world
As Governments turn attention to a lockdown exit strategy, the world is bracing itself for a ‘new norm’ where social distancing and heightened hygiene requirements become a part of daily life.
Adidas calls on BLK BOX for flooring solutions at new World of Sports complex
Adidas believes that creators, just like athletes, need an environment that inspires their employees to perform and believe that through sport, we have the power to change lives.
Gympass partners with Wexer to launch on-demand workouts for operators
Gympass has launched Gympass Plus - including an on-demand platform powered by Wexer - for its 2,200+ operator partners. The platform comprises more than 500 workouts from 18 content providers including Zumba and Gaiam.
What’s your Covid-19 exit strategy? How will you use this time to relaunch your business to thrive, not just survive
There is no escaping the fact that we are operating in extraordinary times. Our physical health clubs, gyms and studios are closed and we’re trying to keep our membership engaged, fit and healthy via online and digital training.
Incorpore and MoveGB ink groundbreaking partnership to transform corporate wellness offering
Incorpore and MoveGB have entered into a landmark partnership, combining the UK’s largest provider of corporate gym memberships with the nation’s biggest network of classes.
fibodo launches Fit 4 the Fight initiative to keep people active in the wake of the coronavirus
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Crown collaborates on £2m luxury spa at Torbay’s Lincombe Hall hotel
Boutique AA 4-star destination Lincombe Hall Hotel, Torquay, has expanded its leisure provision by unveiling a £2m designated luxury spa.
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COMPANY PROFILES
TRX Training UK

Whether beginning a fitness journey or pushing towards your summit, TRX Training helps you to move [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

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Technogym mywellness app
Improve your training experience. All your data in a single app. Find out more...
+ More videos  

DIRECTORY
+ More directory  
DIARY

 

16-17 Jul 2020

APSWC Round Table 2020

Naman Resort, Da Nang, Vietnam
03-05 Aug 2020

World Fitness & Wellness Summit

Raffles City Convention Centre, Singapore
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2020

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
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PRINT SUBSCRIPTIONS
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