Gym Group is in talks with banks about the covenants on its loans, after all its gyms were forced to close in the latest coronavirus lockdown.
The listed company said in a trading update that lenders behind its £100m facility are “supportive” but that “given the ongoing impact from the latest lockdown and its implications for the operational reopening of our gyms, we have started discussions… to review the future covenant tests relating to this facility”.
Gym Group, which operates more than 180 outlets, expects 2020 revenue to come in at £80.5m, slightly more than half of what was achieved in 2019. The company lost 45% of its trading days last year due to Covid-19 restrictions. It has frozen all of its 578,000 subscriptions during national lockdown.
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