Budget fitness chain, Xercise4Less, will have a new ownership structure and financing set-up by the time the UK's gyms are allowed to open their doors to customers.

The chain, which operates 51 gyms across the UK, was put up for sale in May 2020 by its current investors, directors and shareholders, which include the BGF Investment Fund and Proventus Capital Partners.

Speaking to HCM today, a spokesperson for Xercise4Less said a deal was being completed in time for the reopening of the fitness industry. The exact makeup of the shareholding structure and the new funding arrangements have not been revealed, nor has the mechanism by which this has been achieved.

"We're pleased to announce the sale process has finished and the transaction will complete when the gyms reopen, at which time we will be able to share more details,” the spokesperson said.

The decision to look for a new owner was made after Xercise4Less was hit by the COVID-19 lockdown and the owners brought in restructuring specialist Alan Fort to review its position.

In 2018, the company announced ambitious plans to double in size and have 100 clubs open by 2021.

That same year, it secured growth investment of £42m from Proventus, which is debt provider to the company. BGF is understood to have a £21.7m stake, while Jon Wright continues to have an interest in the business.

• Peter Wright, the former Xercise4Less CEO who left the company in January 2020, gave an interview to HCM in January 2019, outlining his plans for the company. Read the interview here.