'Profitable' summer to offset lockdown multi-million pound cash burn for The Gym Group
A national gym operator has confirmed that the closure of its gyms as the result of the new lockdown measures will cost the firm millions.
The Gym Group, which is based in Croydon, has reported that it expects its monthly cash burn during closure to be around £6m.
The company, which has closed its gyms in line with government restrictions, invested £4m between 31 July and 31 October in the completion of four new sites as well as the redevelopment of its London Oxford Street gym.
The firm’s CEO remains confident that its “strong financial position” will support it through the cash burn of the lockdown period.
Richard Darwin, CEO of The Gym Group, explained: “In the three months since reopening The Gym Group has seen good levels of membership demand reinforcing the beneficial role that affordable fitness makes to physical and mental well-being.
“Covid-secure measures are working very well across the sector enabling gyms to remain open even with regional Tier 3 restrictions, encouraging us that we should be able reopen quickly once the national lockdown is over.
“The business has traded profitably during the period and we are confident that our strong financial position, with very low levels of net debt and close to £70m of unused facilities, will provide the platform to resume our growth path once we reopen.”
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