14th May 2014 12:09
LONDON (Alliance News) - Mike Ashley, the founder and deputy chairman of Sports Direct International PLC, is close to a deal to acquire around 30 LA Fitness gyms, which would see the company break into the health and fitness industry, Sky News reported Wednesday.
Ashley has sanctioned a move to acquire the leases on approximately 30 LA Fitness sites, which were put up for sale as part of a restructuring of the struggling gym operator's finances, according to Sky News. It said that Ashley has agreed to offer a parent company guarantee to LA Fitness landlords regarding leases on the gyms.
In March, LA Fitness launched a sales process for 33 of its 80 clubs, as part of a restructuring plan to reduce its club portfolio and significantly reduce its debt burden.
Sky News said that the deal is understood to be imminent, although it said that one source has said the deal might still not happen.
"If the LA Fitness deal is successful, Mr Ashley is likely to pursue an aggressive expansion of the business through other acquisitions," Sky News quoted its source as saying.
It wasn't clear whether the deal would be done by Ashley individually, or through Sports Direct, the UK's biggest sports goods retailer by revenue. Sports Direct declined to comment Wednesday.
http://news.sky.com/story/1261324/sports-direct-to-shed-pounds-with-la-fitness
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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