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Article: Exercising demons: high-end health club chain Sports Club Co. back in the pink after stumbling due to aggressive growth.(This Week: TURNAROUND)(Company overview)
- Article from:
- Los Angeles Business Journal
- Article date:
- October 13, 2008
- Author:
CopyrightCOPYRIGHT 2008 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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SPORTS Club/LA has long been the hangout for celebrities looking to rip their physiques and drop a few pounds. It was even rumored a few years ago that Brad Pitt and Angelina Jolie had requested the Beverly Hills location shut down a few hours while they worked out.
But for all its high profile, the Los Angeles-based fitness chain has not been immune from the struggles plaguing the highly competitive industry, which has margins as thin as some members' waistlines.
Burdened by a costly growth strategy, the publicly traded company was forced to drastically pull back two years ago and sell more than half of its clubs. Even worse for investors, it dropped off ...