| News & Know How | news
Nash and Mastrov
Equipment
team up for fitness
World Acquisition
Refurbished… Remanufactured…
Deal creates new entity:
Steve Nash Fitness World
Refreshed!
By Jon Feld
I
n a cash-strapped economy, refurbished or remanufactured equipment is a
worthwhile option to consider.
“If they’re remanufactured professionally, the units should be in ‘like new’ con-
dition, to the point that the user would be completely unaware that they’re not, in fact,
new equipment. In that case, refurbished machines can really refresh your facility,”
notes Roy Greenberg, vice president of Global Fitness, Inc., in Gardena, California.
“And the resulting savings mean less money outlaid and more equipment on your club
floor, leaving extra dollars for capital expenses and other expenditures.”
In addition to those benefits, financing
and leasing are often readily available for
pre-owned equipment. Frequently,
because the overall outlay for this equip-
ment tends to be lower than for new,
Mastrov, l., and Henry Polessky funding can be easier to obtain. In addi-
tion, warranties tend to range from six
months to a year, with suppliers offering
> Industry catalyst Mark Mastrov
extended warranties. A note on warran-
closed out 2009 with yet another major
ties: Make sure you read the fine print
Like-new lineup
investment, this one involving nBA star
and are aware of exactly what’s covered
Steve nash and the largest club chain
and what’s not.
in British Columbia, Canada.
While the advantages are clear, you still need to exercise caution in buying any
Mastrov’s new Evolution Fitness
previously owned machines. “The single-most important thing you can do is to make
Company (nEFC), a Lafayette, California,
sure you’re dealing with a legitimate company and getting what you pay for: check
investment concern that focuses on
the vendor out,” counsels Mark Clayton, owner and president of Sandy, Utah-based
the fitness industry, was one of the key
Fitness Equipment Source, Inc. “How long have they been in business? Can the
investors in the acquisition of Fitness company supply long-term references? Do they have liability insurance, a valid
World, a 13-club chain in British Columbia resale license number, and a business license number? Do they check out with the
with a membership base of 90,000 mem- Better Business Bureau?”
bers. other investors included nash, who Greenberg adds that, unless the equipment is professionally remanufactured in
already owns three Steve nash Fitness a well-established factory, there’s a risk that it will be sub-par. “Watch out for prices
Clubs, and Angelo, Gordon & Co., a new that seem unrealistically low,” he says. “Companies with limited or no warranty,
York City-based private equity firm. companies with extensive lead times, promises of equipment that isn’t physically in
Together, the investor group pur- stock, equipment that is less than a year old (unless it’s verifiable)—those are all red
chased Fitness World from its founder, flags. Always ask your supplier for pictures, inventory lists, testimonials, references,
Henry Polessky, for an undisclosed sum.
and any other information that helps to determine credibility.”
According to Mastrov, who previously
Quality remanufactured cardio equipment should have certified replaced wear
founded 24 Hour Fitness Worldwide, the
parts; powder-coated frames and metal parts; and rebuilt motors and assemblies.
San Ramon, California-based chain, the
For remanufactured strength equipment, you should find powder-coated frames
newly formed organization is a sizeable
and parts; new grips and hardware; and replaced upholstery.
one with well over $50 million in annual
As for what not to purchase, avoid products that are simply too old or out of pro-
revenues. “We’re a very profitable com-
duction. In exploring options, try to find out not just the age of the equipment, but
pany with lots of aspiration to grow,”
whether a manufacturer still produces the line. While there may be aftermarket
he told The Globe and Mail newspaper.
parts available for many machines, it may not be enough to support their operation
All 13 Fitness World locations were
for the long term. “There are some products in the market that don’t hold up and
officially re-branded as Steve nash Fitness
should not be in a commercial setting,” Clayton asserts. “It’s best to stay with the
World, and Polessky was retained to serve
major brand names.” —|
as director. —| – Jon Feld,
jfeld@inc.com
26
Club Business International | MARCH 2010 |
www.ihrsa.org
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