Sir Richard Branson has announced that he will inject £20m into his fitness club group – Virgin Active – compounding the strain that the larger Virgin empire is currently suffering with.
Virgin Group and Brait, an international investment firm which owns a majority stake in Virgin Active, have injected £20m into the gym chain.
The injection has emerged days after Virgin Australia fell into administration, and Branson seeks a £500m rescue loan deal to keep Virgin Atlantic going.
Branson and Brait were providing the £20m loan to Virgin Active on a pro-rata basis, meaning Virgin’s direct contribution is just £4m by virtue of its 20% equity stake.
Virgin Active operates 43 clubs and employs 3,000 staff across the UK.
