Midlands Engine Investment Fund II Announces Investment in Independent Gym Chain

Fitness Worx, a fast-growing independent gym chain based in the West Midlands, has taken the next step in its growth journey, securing the first large debt finance investment from the Midlands Engine Investment Fund II.

The gym chain has secured a £320,000 debt investment facilitated by the fund’s appointed fund manager for the West Midlands, Frontier Development Capital, to enable it to open a second gym in Coventry.

A new 12,000 sq ft facility at Cannon Park Shopping Centre will open in September, creating eight new jobs in the area. It will also act as the company’s head office and provide space to accommodate its growing team. The funding will be used to fit out the building, buy equipment and provide additional working capital.

Fitness Worx was founded in 2014 when personal trainer Jack Gibson opened his first gym in Kenilworth. The company has since added sites in Warwick, Southam, Leamington Spa, Bristol, Coventry and Stratford and now employs a total of 32 staff across the different locations. The existing Coventry gym, which is in Tile Hill, opened in 2021 but has already reached full capacity in terms of membership numbers.

Fitness Worx prides itself on being ‘community led’ and organises regular events, festivals and competitions to engage members and help them get to know each other. The gyms use cutting-edge equipment and offer a wide range of small group classes, along with one-to-one coaches and personal transformation programmes.

The new site is part of the company’s long-term growth plan, which aims to have a total of 25 sites across the Midlands and beyond in the next 10 years. The latest investment follows funding from the first Midlands Engine Investment Fund, where the business received £100,000 through BCRS Business Loans via the Community Investment Enterprise Facility (CIEF) in 2023.

Jack Gibson, founder and CEO, says: “As a personal trainer, I loved the atmosphere of a private gym and saw the transformations that clients could achieve through one-to-one coaching and small classes. I wanted to offer those benefits within a regular gym with an affordable monthly subscription. This funding will enable us to open our eighth site in the Midlands and take us one step closer to our ultimate goal of becoming the region’s leading independent gym chain.”

David Tindall, Senior Investment Manager at British Business Bank, said: “The Midlands Engine Investment Fund II invests in SMEs in the Midlands with strong growth potential. We’re thrilled this latest investment from the Midlands Engine Investment Fund II in Fitness Worx will support the company’s continued expansion plans and help generate local jobs.”

Marie Kelly of FDC says: “Jack is an impressive operator with a clear vision for the business. His model creates a strong sense of community and a loyal membership with a very low turnover rate. We are pleased to be able to support him on his growth journey.”

The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides debt finance from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunities for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for small businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

The deal was introduced by Adam Cooksley from Navigate Commercial Finance.