Fitness First CEO Andrew Cosslett to step down
by Jak Phillips | 22 Jun 2015
Cosslett said his responsibilities as chair of the 2015 Rugby World Cup require more attention
Fitness First CEO Andrew Cosslett – the man credited with leading the gym chain’s turnaround from the brink of bankruptcy to a resurgent business – is to step down from 1 July.
After three years in the hotseat, Cosslett will step aside to become chair of the Fitness First board, with current board member Oren Peleg to replace him as CEO. With a background in finance, Peleg's appointment has sparked suggestions that he will move to cut costs and boost earnings ahead of a potential exit for Fitness First owner Oaktree Capital Management.
Cosslett’s tenure has seen Fitness First undergo a significant transformation as it bids to remain relevant in a fast-changing market place. The rebrand has been rooted in motivational science, looking at what encourages members to enjoy exercise and stay longer. This has entailed a comprehensive staff training programme, a retune of the gym space resulting in fewer machines and more interactive spaces, as well as what Cosslett describes as a “sense of arrival.”
The departure marks a new dawn for the operator, at a time when communications director Mark Hutcheon is also due to leave.
“After three years at Fitness First, and with my responsibilities as Chairman of the 2015 Rugby World Cup now requiring more of my attention, I have decided that this is the right time to hand over my day-to-day responsibilities as chief executive,” said Cosslett.
“Oren has been a dedicated and engaged board member of Fitness First for several years and knows the business inside and out. He is the right choice to lead the Company during its next phase of growth and development.”
As a member of Oaktree Capital Management’s European Principal Group, the incoming Peleg has been on the Fitness First board of directors since 2012, when funds managed by Oaktree became the company's majority shareholder. Prior to joining Oaktree in 2006, Peleg spent eight years in the principal finance group of Nomura, which subsequently became Terra Firma Capital Partners. Previously, Peleg worked at McKinsey & Company, where he was elected to Partner in 1998.
Peleg said: “Fitness First is an excellent business with great potential. I’m delighted to assume the role of chief executive and look forward to working closely with Andy and the talented team at Fitness First to help the company capitalise on the many exciting opportunities ahead.”
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Fitness First CEO Andrew Cosslett – the man credited with leading the gym chain’s turnaround from the brink of bankruptcy to a resurgent business – is to step down from 1 July. After three years in the hotseat, Cosslett will step aside to become chair of the Fitness First board, with current board member Oren Peleg to replace him as CEO. With a background in finance, Peleg's appointment has sparked
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