March 16, 2020 / 7:12 AM / 20 days ago

BRIEF-Basic-Fit Temporarily Closes All Its Clubs Due To Covid-19

March 16 (Reuters) - Basic Fit NV:

* BASIC-FIT TEMPORARILY CLOSES ALL ITS CLUBS DUE TO COVID-19

* ON CORONAVIRUS: MEASURES ARE BEING TAKEN TO REDUCE SHORT- AND LONG-TERM FINANCIAL IMPACT

* AS IT CURRENTLY STANDS, THE CLUBS IN BELGIUM WILL REMAIN CLOSED UNTIL 3 APRIL, IN FRANCE AND LUXEMBOURG CLUBS ARE CLOSED UNTIL 14 APRIL, CLUBS IN THE NETHERLANDS WILL REMAIN CLOSED UNTIL 6 APRIL AND THE CLUBS IN SPAIN WILL OPEN NO SOONER THAN 27 MARCH

* DECIDED TO TEMPORARILY POSTPONE THE OPENING OF CLUBS AND NO LONGER START THE CONSTRUCTION OF NEW CLUBS

* WE WILL BE ASKING FOR COMPENSATION FOR LABOUR COST IN THE COUNTRIES WHERE WE HAD TO CLOSE OUR CLUBS

* IT IS NOT CLEAR TO WHAT EXTENT THE COVID-19 SITUATION COULD IMPACT OUR RESULTS

* ON CORONAVIRUS: WE DO EXPECT THAT THE CLOSURES WILL HAVE A TEMPORARILY NEGATIVE IMPACT ON THE MEMBERSHIP DEVELOPMENT

* TO FURTHER ASSURE WE HAVE SUFFICIENT LIQUIDITY HEADROOM, WE HAVE STARTED THE PROCESS, WITH OUR SYNDICATE BANKS, TO CALL THE ACCORDION OPTION TO INCREASE OUR REVOLVING CREDIT FACILITY BY €150 MILLION

* WE WILL BE ASKING FOR COMPENSATION FOR LABOUR COST IN THE COUNTRIES WHERE WE HAD TO CLOSE OUR CLUBS

* ACCORDION OPTION IS PART OF FACILITIES AGREEMENT AS AMENDED AND EXTENDED IN 2018

* ON CORONAVIRUS: IMPACT ON RESULTS MUCH WILL DEPEND ON THE DURATION OF THE CLUB CLOSURES AND FURTHER MEASURES BEING TAKEN BY THE GOVERNMENTS IN OUR COUNTRIES

* ON CORONAVIRUS: WE HAVE BEEN TAKING PROACTIVE MEASURES TO REDUCE CLUB AND OVERHEAD COSTS, WHICH INCLUDE THE POSTPONEMENT OF PROJECTS AND STOPPING UNNECESSARY MAINTENANCE AND CLEANING OF CLOSED CLUBS Further company coverage: (Gdansk Newsroom)

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