4 minute read
HCM letters
from HCM Issue 5 2021
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Fuel the debate about issues and opportunities across the industry. We’d love to hear from you –healthclub@leisuremedia.com
Matthew Padian Stevens & Bolton
Virgin Active argued that without the restructuring plan it would fall into administration within days Likened to a ‘CVA on steroids’, Virgin Active’s approved restructuring plan, devised under the government’s new Part 26A of the Companies’ Act 2006, raises the stakes in the ongoing landlord vs tenant unpaid rent battle. However, concerns around the threat of future restructuring plans should not be overestimated.
Deals such as this can only be attempted by companies that have encountered, or are likely to encounter, financial difficulties affecting their ability to carry on business.
Admittedly, this is a low bar, but as we emerge from the pandemic, greater attention will be focused on whether companies resorting to restructuring plans such as this are doing so for the right reasons.
While Virgin Active’s plan could encourage others to follow suit, the number of restructures to deploy Part 26A to date remains low. Launching such a plan is a heavily court-focused process – unlike a CVA – making it expensive and time-consuming, so this route is better suited to larger companies with secured creditors.
Going down the restructuring route is also not without hazards. For example, companies considering a Virgin Active-style approach must be rigorous in avoiding any suggestion of procedural impropriety or that the voting classes have been incorrectly constituted. They also need to consider entering administration or seeking a freestanding moratorium to get a hold on creditor action while plans make their way through the courts.
Landlords entering into new leases may want to ensure forfeiture clauses come into effect in the event that tenants propose restructures and also that rent concessions fall away if restructuring plans are launched. l Under the new Part 26A of the Companies Act 2006, High Court Judge Richard Snowden has given Virgin Active the green light to erase millions in rent arrears it had accrued during pandemic lockdowns.
The company’s landlords argued there were other options available, such as selling the company. More: www.HCMmag.com/rent
PHOTO: SHUTTERSTOCK/SHUANG LI
PHOTO: ANYTIME FITNESS UK Randall says tens of thousands of new members have joined
Neil Randall Anytime Fitness
April was the busiest month for new memberships at Anytime Fitness since we began trading in the UK, with tens of thousands joining, following unprecedented demand.
It would seem that more people than ever are seeing the importance of their own personal health, having come through such a challenging year.
As independent business owners, our franchisees have shared those challenges but have shown initiative in attracting so many new members.
While these figures make fantastic reading, our sector still requires more government support to secure the future of facilities.
Our clubs have made great early inroads in rebuilding their membership bases, but many have had more than eight months with no income in the past year, with no deferrals on sizeable payments, such as rent.
The moratorium preventing commercial evictions has now been lifted, presenting a significant challenge to the industry.
As a sector, we must continue to campaign for the same VAT relief enjoyed by the hospitality sector, as well as legislative support around landlord and tenant relationships.
More: www.HCMmag.com/randall
Gareth Presch World Health Innovation Summit
During the Global Solutions Summit in Berlin recently, I moderated an expert panel with James Sanderson, CEO of the National Academy of Social Prescribing; Roland Schatz, CEO, UNGSII and Päivi Sillanaukee, Finnish ambassador for health and wellbeing.
The group discussed pandemic recovery in relation to improving health and wellbeing and strengthening health
The opportunity exists to create a new model for health and wellbeing, based on prevention, early intervention and the use of different resources, such as social prescribing.
The World Health Innovation Summit (WHIS) has a model that demonstrates that £1 invested creates £36 of societal value, for example.
The aim is to enable people and communities to thrive and improve their health and wellbeing, to support existing health services and create new and meaningful jobs while implementing the UN’s 17 sustainable development goals.
A Global Social Prescribing Alliance playbook (link below) has also been created to support this work. More: www.gspalliance.com and https://whis.uk
systems, while implementing the UN’s Sustainable Development Goals (SDG) by 2030 – specifically SDG 3 which focuses on health and wellbeing.
COVID-19 has dramatically unveiled health inequalities that exist in societies across the world, as well as the fragile state of the world’s health.
We discussed how healthcare costs have been rising rapidly, creating unsustainable demand and how current healthcare systems tend to be based on a sick-care model. We also looked at challenges with global staff shortages – predicted to be 18m by 2030 (BMJ).
It was agreed a one-size-fits-all approach to health isn’t working and consumer preference for convenience and affordability and demand for more efficient, personalised delivery models is growing.
