Ashley looks at taking on rival’s gyms

Feb 2 2009 by Karen Dent, The Journal

NEWCASTLE United owner Mike Ashley is understood to be interested in taking over the gyms belonging to sports retailer JJB.

Ashley, who owns rival sportswear company Sports Direct International, is thought to have formally declared his interest in the chain, which is likely to have a price tag of £30m-£50m.

But he is set to face competition for the business, which JJB is keen to offload to raise cash towards repaying its loans to the banks. The gyms, many of which are located next door to JJB outlets, have continued to perform well in the face of the credit crunch.

JJB founder David Whelan and Fitness First, the world’s biggest fitness club operator, are also thought to be interested if a sale goes ahead.