RICHMOND, VA — Decreasing revenue and memberships at Robious Sports & Fitness during the past five years didn't stop a private equity firm from purchasing the Richmond, VA-based fitness and wellness center last month.
CJW Medical Center, which is a part of the Hospital Corp. of America, sold Robious to Boxwood Partners, Richmond, VA, for an undisclosed price. The county in which the club is located assessed Robious' land and buildings at $7.4 million earlier this year, according to RichmondBizSense.com.
CJW approached Boxwood about the purchase, according to Patrick Galleher, principal at Boxwood. A statement from CJW Medical Center indicated that the company wanted to focus on its core service of delivering health care.
Revenue and memberships have dropped in the past five years at Robious, according to Top 100 club forms submitted by the company to Club Industry magazine. In 2008, the company reported $3.4 million in revenue and 2,639 memberships compared to $4 million and 3,500 memberships in 2004.
Galleher says that competition has increased in the area, creating an oversaturated market.
The club's main competitor recently renovated its facility, which caused some members to transfer, Galleher says. He also says that the 20-year-old Robious is “a little tired and needs a new face.” His group plans to invest between $1 million and $1.5 million in upgrades, including new furniture, carpet, tile and perhaps two more indoor tennis courts. He plans to offer more yoga, Pilates and group classes than the club offers now and to continue with racquetball offerings for the 200 to 300 active racquetball players who are members.
The 70,000-square-foot facility sits on almost 11 acres in the Richmond suburb of Midlothian, VA.