Virgin Active
{{short description|International health club chain}}
{{Use dmy dates|date=April 2022}}
{{Infobox company
| name = Virgin Active Limited
| logo = File:Virgin Active.svg
| caption =
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| type = Joint venture
| traded_as =
| industry = Health club, gym
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| foundation = {{Start date and age|1998}}, in Preston, Lancashire, United Kingdom
| founder = Richard Branson, Matthew Bucknall
| defunct =
| location_city = London
| location_country = England
| locations = 226
32 (UK)
133 (South Africa)
33 (Italy)
11 (Australia)
6 (Singapore)
8 (Thailand)
2 (Namibia)
1 (Botswana)
| area_served = South Africa, Namibia, Botswana, Italy, Australia, UK, Singapore, Thailand
| key_people = {{Unbulleted list|Sir Richard Branson|Matthew Bucknall (CEO of Virgin Active Group) |Christian Mason (Managing Director South East Asia)}}
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| owner = Christo Wiese (80%)
Virgin Group (20%)
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| homepage = {{URL|http://www.virginactive.com}}
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Virgin Active Limited is a chain of health clubs in South Africa, Namibia, Botswana, Italy, Australia, Singapore, Thailand and the United Kingdom.
History
Virgin Active was founded in 1999.{{cite news|title=Branson set to pump £110m from health clubs sale into Virgin Mobile|first=Susie|last=Mesure|url=https://www.independent.co.uk/news/business/news/branson-set-to-pump-110m-from-health-clubs-sale-into-virgin-mobile-9180640.html|access-date=28 November 2011|newspaper=The Independent|date=25 February 2002|quote=The group, which started Virgin Active in 1998, said it would pump the proceeds into developing Virgin Mobile,|location=London}} Their first club opened in Preston, Lancashire that year.{{cite news|last=Reece|first=Damian|title=Branson sells health stake to buy new island|url=https://www.telegraph.co.uk/finance/2754635/Branson-sells-health-stake-to-buy-new-island.html|access-date=28 November 2011|newspaper=The Telegraph|date=24 February 2002|location=London}} Initially headquartered in Milton Keynes, in 2013 headquarters were moved to London, leaving a small call centre in Milton Keynes which closed in 2018.
In South Africa the company bought the assets of the 'Health and Racquet Club' chain after the latter's parent company, Leisurenet, had been placed in liquidation in October 2000{{cite web|last=Mathews|first=Charlotte|title=South Africa: Legal Bills Mounting in Leisurenet Probe|url=http://allafrica.com/stories/200204240094.html|work=BusinessDay|publisher=allafrica.com|access-date=28 November 2011|date=24 April 2002}} for 319.6 million South African Rand (approximately £24.5m as at November 2011).{{cite web|last=Maphologela|first=Kgamanyane|title=South Africa: Future Of Health And Racquet Club Staff Still In Doubt|url=http://allafrica.com/stories/200012180260.html|work=Business Day|publisher=allafrica.com|access-date=27 November 2011|date=18 December 2000}} The South African company also runs Virgin Life Care.
In 2002, by which point the company had 350,000 members, Branson sold 55 percent of the company to Bridgepoint Capital for £40 million. In 2005, Branson bought out Bridgepoint's stake in the business for £134.5 million.{{cite web|title=Bridgepoint sells its stake in Virgin Active back to Virgin for £134.5m|url=http://altassets.info/private-equity-news/bridgepoint-sells-its-stake-in-virgin-active-back-to-virgin-for.html|publisher=AltAssets|access-date=28 November 2011|date=5 October 2005|archive-url=https://web.archive.org/web/20111119011703/http://altassets.info/private-equity-news/bridgepoint-sells-its-stake-in-virgin-active-back-to-virgin-for.html|archive-date=19 November 2011|url-status=dead|df=dmy-all}}
It subsequently expanded its operations in 2004 to Italy.{{cite news|url=http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article6261360.ece|title=Virgin Active seeks to grow la dolce vita |date=May 11, 2009 |work=The Times|access-date=2009-05-29 | location=London | first=Dominic | last=Walsh |archive-url=https://web.archive.org/web/20090514062729/http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article6261360.ece |archive-date=14 May 2009}} By 2005 the company had 25 clubs in the UK, 77 clubs in South Africa and 12 clubs in Continental Europe. It opened its first Australian club in Sydney in late 2008,{{cite web|last=Hammond|first=Michelle|title=Branson's Virgin Active flags Aussie expansion|url=http://www.startupsmart.com.au/growth/2011-07-18/bransons-virgin-active-flags-aussie-expansion.html|work=StartupSmart|access-date=28 November 2011|date=18 July 2011|archive-url=https://web.archive.org/web/20110903103911/http://www.startupsmart.com.au/growth/2011-07-18/bransons-virgin-active-flags-aussie-expansion.html|archive-date=3 September 2011|url-status=dead|df=dmy-all}} with further clubs launched in Singapore and Thailand in 2014.
On 1 November 2006 it took over the UK-based operation of the more prestigious Holmes Place chain, thus increasing its UK chain of clubs from 24 to 72 overnight.{{cite news |url = https://www.independent.co.uk/news/business/news/holmes-place-to-merge-with-virgin-active-414623.html | title=Virgin Active merges with Holmes Place |work=The Independent| access-date=4 September 2006 |location=London |first=Nic |last=Fildes |date=4 September 2006}} On 26 April 2011 it announced the takeover of UK gym operator Esporta's 55 clubs increasing the UK business to 124 clubs.{{cite news|first=Rose|last=Jacobs|date=April 26, 2011|work=Financial Times|url-access=subscription|url=http://www.ft.com/cms/s/0/ecf139c6-6fcf-11e0-8591-00144feabdc0.html#axzz1QUQhBkfU|title=Virgin Active buys rival Esporta|access-date=26 April 2011|archive-url=https://web.archive.org/web/20140216200147/http://www.ft.com/cms/s/0/ecf139c6-6fcf-11e0-8591-00144feabdc0.html|archive-date=2014-02-16}}
In 2013, Virgin Active expanded into the South East Asian market,{{Cite press release|title=Sir Richard Branson Launches First Virgin Active Fitness Club in Asia|date=13 May 2013|publisher=Virgin Active|url=https://www.virginactive.com.sg/images/library/DownloadableFiles/Newsroom/[Media%20Release]%20Sir%20Richard%20Branson%20Launches%20First%20Virgin%20Active%20Fitness%20Club%20in%20Asia.pdf}} first opening a club in Singapore at the heart of the CBD. Located on Level 6, Tower 2, One Raffles Place.{{Cite web|url=https://www.virginactive.com.sg/home/our_clubs/raffles_place.aspx|title=Raffles Place {{!}} High-end fitness experience in the heart of the financial district |website=Virgin Active Singapore|access-date=2019-12-24}} Playing a significant role in opening the first club in South East Asia was Christian Mason, the newly appointed 'Managing Director South East Asia'.{{Cite web|url=https://thefitsummit.com/all_speakers/christian-mason/|title=Christian Mason|website=FIT Summit: Health & Fitness Conference {{!}} Singapore|language=en|access-date=2019-12-24}} Christian Mason then went on to opening 13 more clubs in both Singapore and Thailand.
In 2014 Virgin Active launched a new low-cost gym called Virgin Active RED. The RED gyms focuses on first timers who may be intimidated by training by strategically placing exercise equipment in different stages around the gym and further having touch screen computers and other technologies placed in these predefined area's teaching the user how to do the exercise correctly.
On 16 April 2015, it was reported that Virgin Group and their private equity backers had sold 80% of Virgin Active to the South African investment firm Brait, owned by the billionaire Christo Wiese. The sale price was £682 million for an 80% stake, valuing the business at £1.3 billion, including debt, and the transaction was completed in July 2015. The company will continue to operate under the Virgin Active brand.{{cite news|last1=Kollewe|first1=Julia|title=Virgin Active stake sold to South Africa's Brait for £682m|url=https://www.theguardian.com/business/2015/apr/16/virgin-active-stake-sold-to-south-africas-brait|access-date=16 April 2015|work=The Guardian|date=16 April 2015}}
In 2016, 35 clubs were sold to Nuffield Health, then in 2017, 15 clubs were sold to David Lloyd Leisure.
Facing the impacts of Covid-19 and the closure of clubs in all territories during the government mandated lockdowns, in 2020 Virgin Active's revenue dropped to £224.7 million. The company began working with Allen & Overy as legal counsel and Deloitte as restructuring advisors, plus their lenders began working with Hogan Lovells and Alvarez & Marsal to help them through the restructuring process.{{cite news|last1=Kalia|first1=Jaishree|title=Virgin Active New Money Set to Rank Junior to Existing Debt; Negotiations Ongoing; Allen & Overy Advising Company, Hogan Lovells Representing Lenders|url=https://reorg.com/virgin-active-new-money-set-to-rank-junior-to-existing-debt/|access-date=9 March 2021|work=Reorg|date=4 March 2021}}
Following further closures as of September 2023 the number of Virgin Active gyms in the UK dropped to 32, with 23 of these inside the M25.{{Cite web | url=https://va-cdn.equator-live.com/images/docs/default-source/multi-club-access-guides/virgin-active_multi-access-guide_september-2023.pdf | title=Multi-club access guide | date=September 2023 }} The nine Virgin Active gyms outside London are Salford Quays, Sheffield, Nottingham, Solihull, Northampton (2), Chelmsford, Hadleigh and Brentwood.
Virgin Active has had the following Chief Executive Officers (CEOs) since its inception:
- Matthew Bucknall (1999–2013): Co-founder Matthew Bucknall was CEO from the opening of the first club in Preston, UK, in 1999 until 2013.{{Cite web |last=eArcu |title=VirginActive Careers |url=https://careers.virginactive.co.uk/jobs/home/ |access-date=2025-03-28 |website=careers.virginactive.co.uk |language=en-GB}}
- Paul Woolf (2013–2022): Paul Woolf succeeded Bucknall as CEO in 2013.{{Cite web |last=Walsh |first=Dominic |date=2017-02-28 |title=Virgin Active brings back its former chief |url=https://www.thetimes.com/travel/destinations/africa-travel/south-africa/cape-town/virgin-active-brings-back-its-former-chief-k9ps5zkgj?region=global |access-date=2025-03-28 |website=www.thetimes.com |language=en}}
- Dean Kowarski (2022–present): Appointed in March 2022, Dean Kowarski, founder of The Real Foods Group, became the Group CEO.{{Cite web |title=Virgin Active announces new CEO and Real Foods acquisition {{!}} Virgin |url=https://www.virgin.com/about-virgin/virgin-group/news/virgin-active-announces-new-ceo-and-real-foods-acquisition? |access-date=2025-03-28 |website=Virgin.com |language=en}}
In December 2015, the South African Competition Tribunal announced that it was investigating Virgin Active's South African operations and the Discovery Group for contravening the Competition Act.{{Cite web|url=http://city-press.news24.com/Business/discovery-accused-of-quashing-virgin-planet-fitness-rivals-20151204|last=van Rensburg|first=Dewald|date=8 December 2015|title=Discovery accused of quashing Virgin, Planet Fitness rivals|website=City Press|access-date=2016-07-03}}
Accidents and deaths
In March 2003, 32 year old City banker Katarzyna Woja stepped out of the lift at the Virgin Active (then Holmes Place) Broadgate Health Club in central London, when its cable snapped and the hydraulic cabin plunged downwards.
Woja became trapped between the cabin's mantel and the lift shaft and was dragged downwards, suffering disastrous injuries. She died soon after. Although she was with seven other people in the lift, she was the only one injured in the accident, as she was the last one to step out of the lift. Following a lengthy investigation by health and safety experts Holmes Place (bought by Virgin Active) was charged with six breaches of the Health and Safety at Work Act while the lift manufacturer ThyssenKrupp was charged with four breaches.{{cite web |url=https://www.telegraph.co.uk/news/uknews/5248871/Health-club-prosecuted-over-lift-death.html |title= Health club prosecuted over lift death |work= The Telegraph |date= 30 April 2009 |access-date=2017-03-21}}
In December 2011, Virgin's flagship club in High Street Kensington was accused of covering up the death of model and city worker Elsa Carneau, who drowned in the swimming pool at the west London club. A fire crew and paramedics tried to revive the Imperial College graduate for almost an hour before she was taken to Chelsea and Westminster Hospital, where she was pronounced dead. Westminster coroner's court heard that staff at the club administered CPR incorrectly and falsified paperwork relating to CCTV checks to pretend that they had been monitoring the pool in a “distasteful” attempt to cover their tracks. Firemen also described how a man, who said he was a member of staff, had stood by filming efforts to resuscitate Carneau on his mobile telephone. Pierre Carneau, the victim's father criticised Virgin active for not apologising for the accident. He stated "It was an accident waiting to happen. If things had been done properly, I think there’s a chance our daughter may still be alive.” Virgin Active admitted health and safety breaches and was fined £100,000 at Southwark Crown Court in December 2013. An investigation found “serious shortcomings in the management of risks connected with swimming activity at the club” going back to 2009.{{cite web |url=https://www.telegraph.co.uk/news/10812234/Bransons-Virgin-Gyms-criticised-after-model-drowns-in-pool.html |title= Branson's Virgin Gyms criticised after model drowns in pool |work= The Telegraph |date= 6 May 2014 |access-date=2016-09-16}}{{cite web |url=https://www.standard.co.uk/news/london/virgin-have-never-said-sorry-says-father-of-former-model-who-drowned-at-health-club-9034436.html |title= Virgin have never said sorry, says father of former model who drowned at health club |work= The Standard |date= 2 January 2014 |access-date=2016-09-16}}{{cite web |url=https://www.thetimes.com/travel/destinations/uk-travel/england/london-travel/gym-worker-took-video-of-drowning-swimmer-fmk9vs3nwjc |title= Gym worker took video of drowning swimmer |work= The Times |access-date=2016-09-16}}{{cite web |url=https://www.mirror.co.uk/news/uk-news/elsa-carneau-richard-bransons-virgin-3504188|title= Richard Branson's flagship Virgin Active club criticised by coroner after pool death of former model |work= The Mirror |date= 6 May 2014 |access-date=2016-09-16}}
In April 2014, three gym goers were injured when a suspended ceiling collapsed on to a line of rowing machines at the Virgin Active on Chiswick High Road, in West London.{{cite web |url= https://www.standard.co.uk/news/london/three-injured-after-ceiling-collapses-at-virgin-active-gym-in-west-london-9264831.html |title= Three injured after ceiling collapses at Virgin Active gym in west London |work= The Telegraph |date= 16 April 2014 |access-date=2017-03-21}}