Thousands of health and fitness jobs are hanging in the balance as Virgin Active awaits a ruling that will determine whether it collapses into insolvency.
Sky News understands that the gym chain will discover as soon as this week whether a restructuring plan that is facing opposition from landlords will receive court approval.
Sources said that if the so-called Part 26A proposal is blocked, Virgin Active could fall into administration within days.
Such a move would potentially put more than 2,000 jobs at risk just as the health and fitness sector tries to return to its feet after a year of turmoil.
Brait, Virgin Active’s majority shareholder, has signalled that it will not inject more capital into the business unless the restructuring is approved.
The proposals are being closely watched among insolvency practitioners and lawyers who believe that their implementation by Virgin Active could herald a wave of similar plans.
Virgin Active has 40 UK sites
NCP, the…
