September 2009
The UK’s No 1 fitness industry magazine
Jet-set Mike returns
Gyms being turned down for finance Exclusive by Mary Ferguson A HUGE number of gyms are still being refused finance for new equipment – despite being able to prove they run successful, profitable businesses, Workout can reveal. Operators and equipment providers say that in the last 12 months, they have found it increasingly difficult to obtain credit in order to improve their clubs. And the claims come just three months after an FIA report revealed the sector has grown by three per cent in the same period. Ian Thorpe, director of equipment providers Fitness Systems, claims that in the last year he has even seen gyms worth millions of pounds turned down. “Gyms seem to be doing really well in terms of membership – especially the independents – but they are unable to capitalise on this by investing in new equipment because they are being turned down for credit. “It’s also taking longer for finance applications to go through and some operators are waiting six weeks to be told they have been rejected. To be honest, I’ve no idea when things are going to get better.”
Workout has heard examples of: I An operator who was given £30,000 in November, spent £10,000 straight away but then had the remainder taken away – despite being able to prove the business had grown. I The owner of a ladies only gym who had sold his house to open the business, and was turned down for just £3,000. Workout has also spoken to operators who say they have had to use their own homes as collateral for equipment, despite being viable and successful businesses. And Rick Fowler, sales manager for Servicesport, said that despite a busy order book, he has also seen many frustrated operators rejected for finance. Hazel Jake of credit providers Unique Leasing predicts operators may find it tough for at least another year – but added there are things they can do to help themselves. “To get a better chance of obtaining finance, gym operators need to be able to show up-to-date bank statements, and management accounts if they have them. They need to be prepared to prove the strength of their businesses a lot more now than 18 months ago.”
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Fitness industry stalwart Sharron Davies is fronting a team of inspirational speakers, whose achievements will be used to send motivating messages to audiences from big business to schools and colleges. The British swimming legend has teamed up with stars including Joey Bull, track athlete Jennifer Stoute and Diane Youdale – best known as Gladiators favourite ‘Jet'.
AN Edinburgh gym owner has flown back from touring with pop sensation Gwen Stefani to look after his newly opened club in the city. Mike Heatlie launched the Mike Heatlie Personal Training Gym in March but six weeks later, was asked to accompany the former No Doubt singer on her fivemonth tour of the US. Mike, who has been the star’s trainer for years, is now concentrating on driving up membership numbers. He said: “It was difficult because I was in America so couldn’t do much and some of the advertising and promotion didn’t get us the response we wanted. So my aim now is to work with the existing members and try to sign up their partners and friends.” Mike added that the money he made from touring with Gwen helped when developing the gym – which is aimed at women over 30 – went over-budget. I Full story, Page 34