Pure Gym secures £100m cash injection to provide buffer against second lockdown
Pure Gym has secured a £100m cash injection from shareholders to help it recover from the coronavirus crisis and provide a buffer in the event of a second lockdown.
Alongside the equity injection from shareholders Leonard Green Partners, the budget gym operator has also boosted its Revolving Credit Facility by £50m, increasing total liquidity to £297m.
Pure Gym said the move is intended to bolster its balance sheet, help it return to a growth strategy and to provide a cash buffer in the event of a local or national lockdown.
The company said its second quarter performance was “significantly impacted” by the closure of its gyms during the UK coronavirus lockdown.
Like-for-like member volumes and gym visits have been “encouraging” since the firm reopened its estate.
Pure Gym chief executive Humphrey Cobbold said: ““The Covid-19 lockdown resulted in the
closure of our estate for an extended period, forcing us to operate under an almost unthinkable scenario of near zero revenues.
“In circumstances that might have forced many businesses to go bankrupt, the team across the UK and Europe did an outstanding job of preserving cash, re-fitting the gyms to be safe and then re-opening the estate.
“We are delighted with the member response to our TrainSafe protocols in the UK and equivalent Covid-19-safe arrangements across Europe. We are now welcoming our members back to our gyms and are intent on re-earning their trust.”