Prospheres dirigeants’ involvement with CMG began in October 2017. At that time, the group managed 23 fitness centres in Paris and the Paris region under the CMG brand, 29 facilities outsourced to companies, and a training school for sports coaches, run by some 600 employees. CMG positioned itself in the mid-range segment of the fitness market alongside the host of new low-cost providers and the few high-end fitness clubs.
In 2017, the company had a turnover of EUR 40 million and an operating loss.
The shareholders, an investment fund and Club Med, initially appointed Prospheres dirigeants to assist the company’s management in restructuring the business and restoring it to financial equilibrium with a view to a sale.
In response to the shortcomings of the existing management, Prospheres dirigeants assumed sole control of the company three months after arriving, in December 2017.
Deploying its innovative and ambitious approach, after analysing CMG’s business model and carefully monitoring the behaviour of CMG’s loyal customers, of customers who had left CMG and of a panel of Parisians interested in joining a club, Prospheres dirigeants implemented a quality policy that met the specific expectations of a mid-range positioning.
This included steps to adapt the services provided. This would also require a profound reorganisation of the company, including a staff reduction project aimed above all at achieving a better balance between the paid working hours of the salaried sports coaches and the activity provided to club members. This process has also resulted in the adjustment of support functions to meet the real needs of creating value for customers and reducing management overlap.
At the same time, club managers were given full responsibility for the management of their site, including customer satisfaction, economic performance, commercial effectivness, human resources and maintenance, with maximum autonomy while providing adequate managerial support.
The policy implemented by Prospheres dirigeants enabled CMG to break even for the first time in several years.
