Having secured approval from 86 percent of its creditors, experiential leisure operator Gravity has entered into a CVA to reduce cost pressures, agree landlord compromises and safeguard the future of its 20 UK sites. Just as well, Gravity’s retail units are buzzing.

Experiential leisure operator Gravity has undergone a company voluntary arrangement in a move it said will provide a “stable platform for the long-term future of the business”.

Gravity Fitness, which operates 20 sites across the UK, secured approval from 86 of its creditors for the CVA. The business runs 14 trampoline parks alongside four venues under its Gravity Max entertainment brand, as well as the Xscape climbing centre in Castleford and the Gravity Arcade site at Bluewater. 

“The business has expanded rapidly in recent years. However, like many in the leisure sector, rising costs, including staff costs and business rates, as well as soft consumer spending have impacted its ability to expand revenues and keep pace with its investment and debt obligations,” commented James Clark and Rick Harrison, of advisory firm Interpath, which advised Gravity. “The CVA proposal is designed to secure the long-term future of the business and maximise returns for stakeholders, including landlords. As part of the CVA, a number of compromises have been made with landlords.”

Harvey Jenkinson, chief executive at Gravity Fitness, added: “The CVA provides a stable platform for the long-term future of the business, and as such, we were pleased to have secured the approval of the majority of our creditors. All our Gravity sites remain open, and it is business as usual for us. We welcome more than two million customers each year to our sites across the UK and, with the support of the CVA, we aim to continue operating across our sites for years to come.”

Defying gravity

Interpath said……. “The business has expanded rapidly in recent years. However, like many in the leisure sector, rising costs, including staff costs and business rates, as well as soft consumer spending have impacted its ability to expand revenues and keep pace with its investment and debt obligations……