Seething around BVI. What happened next to Health & Racquet Club
In December 2000 the information that Virgin Active is acquiring the 85-strong chain of Health & Racquet Clubs of South Africa from the liquidators of LeisureNet appeared in press. Sir Richard Branson, chairman of the Virgin Group of Companies, and Virgin Active bought the chain for £28 million the same month.
Sir Richard Branson was interested in South Africa's Health & Racquet Club (H&RC) for he considered South Africa to be a priority territory for expansion. Also, he was glad to make an offer that would protect most of the jobs and clubs. It is said that South African business was bought from Health & Racquet in response to a personal request to Sir Richard Branson from Nelson Mandela.
Virgin Active decided to replace the former Health & Racquet gym image with “a totally new Life Centre concept” that would contain state-of-the-art equipment, Life Libraries and Internet stations, Virgin Cosmetics and beauty treatments.
So, after the LeisureNet chain went into liquidation, the South African clubs got their second breath. Due to the Virgin Active business model, the business was turned upside down.
In February 2002, Richard Branson's Virgin Management sold 54% of its Virgin Active Group of health clubs to Bridgeport Capital for £134.5 million. This was done to help Virgin Atlantic Airways' cash flow after the 9/11 terrorist attacks in the USA in 2001. Since then, the business increased its portfolio in South Africa as well as has increased its number of clubs in the UK twice and entered the Italian and Spanish markets. Now Virgin Active now has 78 clubs in South Africa, 25 clubs in the UK and 12 clubs in Continental Europe. All in all, it is 635,000 members worldwide.
Then, in 2005, Sir Richard Branson bought his business back. The sum of the deal is not disclosed to the public. Now Virgin Active is preparing for expansion and plans to include special facilities for children and to attract more black members. Branson said that Bridgepoint has been a great partner and thanked the company for their support over the last 3 years.
That’s a good part of the story about the business that in 2000 was brought to bankruptcy. And another story of success of outstanding entrepreneur Richard Branson, the father of Virgin brand and the owner of a beautiful BVI island – Necker Island.
Sir Richard Branson was interested in South Africa's Health & Racquet Club (H&RC) for he considered South Africa to be a priority territory for expansion. Also, he was glad to make an offer that would protect most of the jobs and clubs. It is said that South African business was bought from Health & Racquet in response to a personal request to Sir Richard Branson from Nelson Mandela.
Virgin Active decided to replace the former Health & Racquet gym image with “a totally new Life Centre concept” that would contain state-of-the-art equipment, Life Libraries and Internet stations, Virgin Cosmetics and beauty treatments.
So, after the LeisureNet chain went into liquidation, the South African clubs got their second breath. Due to the Virgin Active business model, the business was turned upside down.
In February 2002, Richard Branson's Virgin Management sold 54% of its Virgin Active Group of health clubs to Bridgeport Capital for £134.5 million. This was done to help Virgin Atlantic Airways' cash flow after the 9/11 terrorist attacks in the USA in 2001. Since then, the business increased its portfolio in South Africa as well as has increased its number of clubs in the UK twice and entered the Italian and Spanish markets. Now Virgin Active now has 78 clubs in South Africa, 25 clubs in the UK and 12 clubs in Continental Europe. All in all, it is 635,000 members worldwide.
Then, in 2005, Sir Richard Branson bought his business back. The sum of the deal is not disclosed to the public. Now Virgin Active is preparing for expansion and plans to include special facilities for children and to attract more black members. Branson said that Bridgepoint has been a great partner and thanked the company for their support over the last 3 years.
That’s a good part of the story about the business that in 2000 was brought to bankruptcy. And another story of success of outstanding entrepreneur Richard Branson, the father of Virgin brand and the owner of a beautiful BVI island – Necker Island.
posted by Brian Obvi, Offshore Analyst | 5:52 PM
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