I was chatting this week with an industry colleague who has recently thrown in the towel on a health club in Southern England she was trying to turn around. The club is beautifully situated with sea views, but poorly located. There are simply not enough residents living close enough to the club to make it work. Having worked really hard to get the club back to break-even point, the dreaded rent review took place, resulting in a 44% annual increase. That was the knock-out blow.
The club has now been transferred to another party, but my assessment is that this business is irrevocably flawed. Time will tell if I am right.
Tags: Health Club Industry