‘P***ed off’: Virgin Active to close Bourke Street club, halving Melbourne footprint

Loyal customers of Virgin Active are “p***ed off” after the Richard Branson-owned gym chain made a sudden announcement this week.

EXCLUSIVE

Loyal customers of Virgin Active are furious after the Richard Branson-owned gym chain revealed it would be closing down one of only two Melbourne locations within weeks.

The decision to shut the Bourke Street gym, announced in a sudden email on Tuesday, “reduces the footprint by 50 per cent” and is expected to “significantly increase human traffic” in the Collins Street club, one long-time member told news.com.au.

Virgin Active has eight locations in Sydney but only two, soon to be one, in Melbourne.

A member working out at Virgin Active on Bourke Street. Picture: Supplied

The “huge” Bourke Street club, which boasts a 25-metre pool and a 13-metre rock climbing wall, will close from Thursday April 4.

“It’s a huge deal for loyal members, particularly when the gym isn’t adjusting membership prices to reflect the change and there are major issues at the Collins Street gym,” said the member, who pays $200 per month.

“I’m loyal, but I’m angry.”

The man, who asked not to be named, has been a Virgin Active member for 10 years in Sydney and Melbourne.

“They used to be amazing and just over time they’ve made incremental changes without communicating that have p***ed members off,” he said.

“They used to have an incentive where if you went 12 times in a month you would earn 500 Virgin Velocity points.”

Richard Branson tours the Collins Street club. Picture: Sarah Matray

Virgin Australia’s Velocity Frequent Flyer ended its partnership with Virgin Active, which is owned by Richard Branson’s Virgin Group and a separate company from the Australian airline, in August 2020.

“They just sort of removed that and nothing was ever communicated about it,” the member said.

Other recent changes at the fitness chain included “removing Les Mills classes in Sydney gyms and replacing them with subpar, Virgin Active-devised classes”, all while “bumping membership prices up and up”.

“They still do Les Mills spin classes down here [in Melbourne] a little bit but the timetabling is shocking and the bikes are so beyond needing to be replaced,” he added.

With memberships starting at $38.50 per week, Virgin Active is one of the priciest major gym chains, according to comparison website Finder.

“To accommodate changes in demand, Virgin Active is right-sizing its presence and has made the strategic decision to close our Bourke Street club,” the Tuesday email to members said.

Virgin Active is closing one of its two Melbourne CBD locations. Picture: Sarah Matray

“With two large-format clubs in the Melbourne CBD, Virgin Active will now focus investment on our club located at 567 Collins Street. The recently revamped Collins Street club is a 12 minute tram ride from our Bourke Street club (Tram 86 and 96) and located close to Southern Cross station. It boasts all the faves you know and love at Bourke Street.”

The company said it had invested $4 million revamping spaces in its Australian clubs over the past two years “and we are committed to continuing to provide members with world-class facilities and experiences”.

“We will continue to operate nine clubs in Australia and actively look for opportunities to grow our network in Australia and across the world,” it said.

“In light of the upcoming closure, we want to ensure a smooth transition for our members.”

Existing memberships and subscriptions such as personal training or towels will be transferred over.

“If you do decide to discontinue your membership, we’ll waive any termination fee,” the email said.

“We’re committed to making this change seamless and continuing to support you on your wellness journey.”

The chain has eight locations in Sydney. Picture: Gaye Gerard/NCA NewsWire

The member said even if a reasonable percentage of customers took up the offer to waive the $300 cancellation fee, it would still mean significantly more people squeezing into the remaining gym.

“I have a friend from work who’s thinking of leaving, another friend is quite annoyed,” he said.

“I understand the business realities, it’s just the communication is a bit weak. I go there for a reason — I really like it. I don’t want to bring it down, it’s just quite annoying.”

A Virgin Active spokeswoman confirmed the “strategic decision” to close the Bourke Street location.

Australia’s fitness industry has struggled to recover from the Covid pandemic, when lockdowns in 2020 and 2021 sparked a rise in popularity of home workouts.

The troubled F45 empire has been the biggest casualty, with scores of franchises going under in the past three years.

And in December, mixed martial arts gym franchise UFC Gym collapsed into administration.

Annual revenue for gyms and fitness centres in Australia fell by 9.2 per cent over the five years to 2024 to $2.2 billion, according to IBISWorld.

“The effects of the pandemic were calamitous for industry performance,” the market research firm says.

“Gyms and fitness centres were consistently expanding before the pandemic. Many consumers withheld membership fees during lockdown periods. Consumers have shifted their demand away from larger facilities to smaller, individualised fitness groups.”

Over the next four years, “continued at-home gym trends and the reorganisation of amateur sports will hinder the industry’s expansion”.

“Revenue is forecast to rise by an annualised 3.8 per cent through the end of 2028-29, to $2.6 billion,” IBISWorld says.