Thousands of health and fitness jobs are at stake as Virgin Active awaits a decision that will determine whether it goes into insolvency.
Sky News understands that the gym chain will find out as early as this week whether a restructuring plan facing homeowner opposition will receive court approval.
Sources have said that if the so-called Part 26A proposal is blocked, Virgin Active could fall under administration within days.
Such a move would potentially put more than 2,000 jobs at risk, as the health and fitness industry tries to get back on its feet after a year of turmoil.
Brait, the majority shareholder of Virgin Active, has indicated that he will not inject more capital into the company unless the restructuring is approved.
The proposals are being followed closely by insolvency practitioners and lawyers who believe their implementation by Virgin Active could herald a wave of similar plans.
Virgin Active has 40 locations in the UK
NCP, the car park operator, has announced that it wants to pursue such a financial reorganization.
The owners, including Aberdeen Standard Investments and British Land, have argued that they should shoulder a disproportionate share of the financial pain of Operation Virgin Active.
Landlords will be forced to write off millions of pounds in rent arrears and agree to future reductions if the restructuring is approved.
The gym group, which is partly owned by Sir Richard Branson, says the proposals represent a “holistic but fair solution, with shareholders contributing more than 50% of the proposed contributions.”
The court ruling will come amid a fierce debate over the impact of the pandemic on business owners, who argue that a government moratorium on evictions has unfairly penalized them.
Britain’s leading commercial real estate trade association has warned that approval of the restructuring of Virgin Active …
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Source: news.sky.com
This notice was published: 2021-05-06 08:59:00
