Cannons latest operator to unveil expansion

Following the management buy-out earlier this year, Cannons has followed suit in the major health club expansions unveiled this week with plans to more than double by 2006.

From next year, Cannons plans to invest £275m in expanding the chain from 42 to 101 clubs in the UK. The existing two sites in Holland will be rolled-out to 19, and the operator is still considering opening in Spain and Germany. Focus for the expansion, however will be on London and the South East.

Four more clubs are scheduled to open this year - including Cannons' first foray into Scotland at East Kilbride - and 10 sites have been identified in England and Scotland for 2002.

Financing for the investment comes from cash generated from existing clubs and bank facilities set up as part of the management buy-out lead by chief executive Harm Tegelaars.

Cannons development director, Chris Gotla, says the company's mid-term strategy lies in expanding the portfolio: The development of Cannons primarily through organic growth is a key priority over the next five years. We believe the market still has five to seven years growth capacity and we intend to maximise these opportunities.

Clubs will be modelled on the standard 25,000sq ft Cannons blueprint.