Several leisure centres around the UK have been taken over by local authorities after a national leisure charity recently entered administration.
Fusion Lifestyle, which operated 20 leisure centres and swimming pools nationwide, 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.
It cited “sustained financial pressure” for the situation, with specific reasons including rising costs, reduced government funding and post-pandemic recovery.
Nadeem Sweiss and Adam Stephens of S&W Partners have been appointed as joint administrators of the charity.
The charity added the majority of its local authority partners had agreed to a “transition period” and would support it through administration until a new permanent operator was secured to manage the leisure centres.
Local authorities in Somerset and Devon are among those who have taken over leisure centres in their areas previously operated by Fusion.
Meanwhile, in south London, the Brockwell Lido Users group, which had been campaigning to save the Fusion-operated lido from closure, announced last month that it had been awarded charitable status.
Charity overdue filing accounts by over one year
Fusion Lifestyle is more than a year overdue in filing its accounts for the year ending March 2024 with the Charity Commission and its 2024-25 documents are not filed.
The charity’s latest accounts, for the financial year ending in December 2022, were filed 136 days late.
It recorded an income of £50.8m in 2022, costs of £58m and had 1,865 employees according to the accounts.
Fusion Lifestyle management said in a statement: “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.
“Despite these efforts, it has not been possible to identify a viable pathway that would ensure the long-term financial stability of the charity.
“Throughout this process, the trustees have remained focused on acting in the best interests of staff and stakeholders of the charity. Particular consideration has been given to minimising the impact on employees and the communities the charity serves.
“The trustees are pleased that, with the support of local authorities, there will be minimal disruption to leisure centre services and that a significant number of jobs will be protected through this process.
“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.
