Yorkshire gym group stride out with capital injection
Yorkshire-based gym group, Xercise4Less, has netted a £5m investment from the Business Growth Fund (BGF).
Managing director Jon Wright will use the cash to fund grand expansion plans for the company which will soon open gyms further afield including Bristol, Gateshead and York, among other locations.
To complement the capital injection, Xcercise4Less will also get a new board member to help steer the business.
Jon Wright said: “With the UK gym market being valued at around £4bn, with a growing trend that sees the more nimble low-cost gyms increasingly taking market share from mid-market operators, this is an exciting time to be aggressive about our growth.
“BGF’s funding will give us the financial and operational facilities to continue our expansion at a key time for the market and we look forward to working with the team over the coming years.”
Xcercise4Less has developed business at large out-of-town developments, where floor sizes are 30,000 sq ft or more.
The business also recently announced a partnership with Tesco at its Stockton store in which it will provide the retailer’s shoppers with the opportunity to combine their shopping trip with their weekly workouts.
The site, to be branded Xercise4Less at Tesco is currently being developed on the 31,910 sq ft mezzanine floor of the Tesco Durham Rd store and the opening of this site will create over 50 jobs in the area.
Mr Wright added: “The Xercise4Less concept is growing because we believe that a budget gym shouldn’t offer a budget experience. Cost remains a major issue for many consumers today but we work hard to ensure our members benefit from many added value services.”
Richard Taylor, BGF, said: “We are delighted to be working with Xercise4Less; it is an exciting brand with a very simple but attractive consumer offering. The company has established a unique model in a high growth sector and the management team, under Jon’s guidance, has demonstrated its expertise in rolling out new gyms over the past 18 months and consistently delivering a fantastic customer experience at the same time.
“We are really encouraged by the response that we have had from businesses in Yorkshire and the North West. This is our third investment in a local business in two months, making us currently one of the most active investors of long-term growth capital in the region.”