A major leisure charity has gone into administration after failing to overcome rising costs, reduced government funding and post-pandemic recovery challenges.
Fusion Lifestyle, which operates 20 leisure centres across the UK, said it had not been able to identify a viable pathway that would ensure its long-term financial stability, despite efforts to restructure and secure investment.
The charity said the majority of its local authority partners had agreed to a transition period and would support it through administration until a new operator was secured to manage the leisure centres.
But it confirmed that Golden Lane Sports and Fitness Centre in central London would close at the end of April following “careful consideration and consultation” with the City of London Corporation.
Fusion Lifestyle is more than a year overdue in filing its accounts for the years ending March 2024 and 2025. The charity’s latest accounts, for the year to the end of December 2022, were filed 136 days late.
Fusion Lifestyle recorded an income of £50m, costs of £58m and had 1,865 employees according to the accounts.
In a statement, Fusion Lifestyle management said: “The leisure sector has faced sustained financial pressures, including rising operational costs (particularly energy costs), reduced government funding and ongoing post-pandemic recovery challenges.
“Over recent months, the trustees, the charity’s management team and its external financial advisors have explored all reasonable options to secure a sustainable future for the charity.
“This has included engaging with key stakeholders, seeking additional funding, reviewing operational efficiencies and considering restructuring options.”
The charity’s management said it had focused on acting in the best interests of staff and stakeholders throughout the process.
It said local authority support had helped to ensure minimal disruption to leisure centre services, and “a significant number of jobs will be protected through this process.”
The charity said: “This decision has not been taken lightly. The trustees would like to place on record their sincere thanks to staff, volunteers, partners and supporters for their commitment and contribution to the charity’s work.”
Nadeem Sweiss and Adam Stephens of S&W Partners have been appointed as joint administrators of the charity.
Sweiss said: “Our priority is to maintain uninterrupted access to these vital community facilities while we progress discussions with the local authorities, who will be putting new operators in place to run the leisure centres.
“We know how important these centres are to the communities they serve, and we are committed to supporting a smooth transition.
“We will continue to work collaboratively with management and local authorities to limit disruption and safeguard the long-term future of the centres.”
The charity did not respond when asked for up-to-date information on staff numbers.