The Gym Group, a UK low-cost gym operator, has secured GBP20m to fund its expansion plans.
Financial backing for the growth strategy consists of further incremental commitments from lead investor Bridges Ventures and a revolving credit facility from HSBC.
Chief executive John Treharne says: “Prevailing economic conditions mean that for many businesses access to new sources of funding remains limited. Our ability to secure substantial financial backing from such respected finance providers at a time when capital is so constrained is testament to the robustness of The Gym’s business model and our continued delivery against its objectives.
“This funding will allow us to focus on bringing affordable gyms to more consumers across the UK. We are on target to reach a total footprint of 50 gyms over the next two years.”
The funding will enable The Gym to continue its expansion strategy with the focus on densely populated residential and city centre retail/mixed use regeneration developments across the UK.
The Gym was backed at its inception in 2007 by Bridges Ventures.
Anne-Marie Harris, investment director at Bridges Ventures, says: “In spite of wider economic conditions, The Gym Group is thriving. Under the leadership of its founder and executive management team the business has achieved rapid roll out and significant growth during a period of unprecedented economic uncertainty. While recent research reveals that two thirds of consumers are still worried about the future of the economy, this has done little to curtail the growth in membership at The Gym’s locations.”
