CMG Sports Club owners appoint restructuring firm after CEO exit

5 Feb 2018

The owners of CMG Sports Club have appointed a firm specialised in corporate restructuring to take over the leadership at the Paris-based fitness club operator, after the departure of its chief executive a few days ago.

Vincent Monnot was appointed at the helm of CMG Sports just fifteen months ago but he left the company amid growing pressure from low-cost operators that have been spreading rapidly in the French capital.

CMG Sports Club was taken over in 2016 by LFPI, an investment firm that provided financing for the previous financial owners. The company confirmed that they have brought in Prospheres to deal with the declining sales and structural issues at the group.

“Like many other companies that were precursors in their sector, CMG Sports Club has to reinvent itself to satisfy consumer expectations, to make the digital leap and to improve its profitability in a context of growing competition, where many clubs open – and close, on an almost daily basis,” writes Renaud Carpe, the group’s marketing director. He adds that the operator is preparing a “coherent and profitable” business model, which will be implemented from the second quarter.

The former Club Med Gym has long been the leading fitness club operator in Paris, with 23 clubs in and around the city. However, it has struggled to justify standard annual membership prices starting from €880, amid growing competition from much cheaper clubs with fresh concepts and equipment.

Read the full story in FNE#48.

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