Virgin Active to close Bourke Street Melbourne club
Virgin Active is closing its Bourke Street club in Melbourne, which boasts a 25-metre pool and a 13-metre rock climbing wall, from Thursday 4th April.
Members have expressed their ire across social media following the sudden announcement which, as reported by News Limited, was announced to members via an email last week.
The email was sent after Virgin Active founder Richard Branson was included in a Bourke Street Facebook post in January 2024 along with the comment “Screw it. Let’s Do it” (it is not known what this was in reference to. ed)
The email to members advised that the decision to shut the Bourke Street gym “reduces the footprint by 50%” and is expected to “significantly increase human traffic” in the Collins Street club.
The email noted “to accommodate changes in demand, Virgin Active is right-sizing its presence and has made the strategic decision to close our Bourke Street club.
“With two large-format clubs in the Melbourne CBD, Virgin Active will now focus investment on our club located at 567 Collins Street. The recently revamped Collins Street club is a 12 minute tram ride from our Bourke Street club (Tram 86 and 96) and located close to Southern Cross station. It boasts all the faves you know and love at Bourke Street.”
Virgin Active has eight locations in Sydney and now will only have one in Melbourne.
The company said it had invested $4 million revamping spaces in its Australian clubs over the past two years “and we are committed to continuing to provide members with world-class facilities and experiences, with email adding "we will continue to operate nine clubs in Australia and actively look for opportunities to grow our network in Australia and across the world.
“In light of the upcoming closure, we want to ensure a smooth transition for our members.”
Existing memberships and subscriptions such as personal training or towels will be transferred over.
The email went on to say “if you do decide to discontinue your membership, we’ll waive any termination fee”, adding "we’re committed to making this change seamless and continuing to support you on your wellness journey.”
The announcement of the Bourke St Melbourne closure follows Virgin Active announcing in January that an investment of almost $5 million is being made in Singapore clubs, transforming them into holistic wellness havens with new equipment, specialist programs, and exclusive Fitness Therapy Zones.
New equipment across Virgin Active clubs in Singapore include a range of equipment from Technogym’s Pure Line for its ergonomic design and exceptional durability.
The significant investment in Singapore highlights Virgin Active’s aim of positioning itself as a leading global premium wellness brand in Singapore and the broader south east Asian region.
Further closures of F45 sites
Media reports have also advised of the closure of two more F45 franchises.
DRX Fitness, which traded as F45 Training Alexandria operating a franchise in Sydney’s inner-east called in liquidator Graeme Beattie of Worrells on 26th February, while on 13th March, liquidators Nicholas Giasoumi and Shane Deane from Dye & Co were appointed to oversee the liquidation of Lado Pty Ltd, which formerly traded as F45 Traralgon, operating a gym franchise in Victoria’s south east.
F45 Training Alexandria is reported to owe money to staff in the form of wages and superannuation contributions, trade creditors and to business finance company Lumi Finance while tax debts are still being assessed.
F45 Traralgon is understood to owe money to the Australian Taxation Office, its landlord, its accountant and a vendor finance company.
Giasoumi told News Ltd “like hundreds of other of gyms, it’s very hard to climb out of the Covid hole.”
More than 20 F45 gyms have shut in Australia over the past 18 months.
As well as competition from other gym chains, franchisees cite factors such as small territories which put them in competition with other F45 franchises, high rents and the percentage of revenue taken by the parent company as the reasons behind their failure.
Image top: Virgin Active website announcing closure of Bourke Street; a Facebook post on Bourke Street showing Branson in January with odd remark “Screw it. Let’s Do it”; Virgin Active Bourke Street Reformer Pilates; Pool; Climbing Wall
Related Articles
20th February 2024 - Virgin Active Australia marks Adam Spicer’s decade-long contribution
29th January 2024 - Virgin Active Singapore spotlights transformative shift in corporate wellbeing requirements
17th January 2024 - Virgin Active invests $5 million to transform Singapore clubs
2nd January 2024 - Survey of major fitness groups shows club openings outstrip closures at rate of two to one
8th November 2023 - Fitness entrepreneur targets closing F45 gym sites
20th October 2023 - Media reports advise of multiple closures of F45 gyms
7th August 2023 - Virgin Active to launch new loyalty program for members
22nd March 2022 - Virgin Active announces new chief executive appointment
3rd March 2021 - Sydney Opera House partners with Virgin Active Health Clubs to deliver four-week fitness series
21st April 2020 - Arts and sport set to be impacted by Virgin Australia’s administration
20th March 2020 - Virgin Active closes Singapore gym after two positive Coronavirus tests
11th December 2019 - Virgin Active Health Clubs open latest location at Sydney’s Bondi Junction
28th November 2019 - Virgin Active opens new club in Sydney’s St Leonards
9th August 2019 - Virgin Active opening four new clubs in Sydney
17th July 2018 - Virgin Active reports 13% global revenue growth through 2017
