The fate of Fusion

Fusion Lifestyle, which operated a network of leisure centres across England, entered administration on 1 April with Nadeem Sweiss and Adam Stephens of S&W Partners appointed as joint administrators for the business. To minimise disruption to the public, many of the local authorities have agreed to a transition period, supporting the charity in administration, while a new operator is secured to manage the leisure centres, ensuring key services remain open to the local community. Most of the leisure centres managed by Fusion will continue to operate. Somerset Council states that facilities in Frome, Wells, Glastonbury and Street, will continue to operate for the next three months while a new operator is lined up. The lido in Shepton Mallet is expected to open in May as usual.

Charnwood Borough Council says three leisure centres – in Loughborough, Syston and Mountsorrel – will operate as normal and says it expects to appoint a new operator in the coming months.

Tunbridge Wells Borough Council said Serco Leisure – in partnership with Leisure Solutions Community Trust – would take over management of its facilities once a handover date was agreed. According to West Devon Council, Parkwood Leisure would take over Meadowlands Leisure Centre in Tavistock and Parklands Leisure Centre in Okehampton after the council awarded a short-term contract. At the time of writing, facilities that have been confirmed as closing include the leisure centre situated at Golden Lane Sports and Fitness Centre – owned by the City of London – which will be shutting its doors on 30 April 2026.

In a statement, S&W said: “The joint administrators, management team and local authorities are focussed on providing support to those impacted by the immediate changes, including those impacted by closures, and are committed to a smooth transition.”

Fusion, which had its headquarters in Dartford, Kent, cited “rising operational costs, reduced government funding and post-pandemic recovery challenges” as the causes of its financial struggles. It said it had “made significant attempts to introduce new funding” that had been unsuccessful.

SECTOR-WIDE ISSUE

The difficulties experienced by Fusion were closely mirrored by another leisure operator, Active Nation, which ceased trading nearly a year earlier, back in June 2025. Despite achieving strong participation and membership numbers, impressive retention figures and healthy sales, Active Nation’s cost base proved simply too much.

Stuart Martin, the former CEO of Active Nation, said the demise of Fusion was sign of just how wide-spread the issue of increased operating costs is.

“Fusion isn’t an isolated case - it’s a continuation of a pattern the sector has been warning about for years,” Martin told WellNation. “At Active Nation, we saw first-hand that strong participation and demand aren’t enough to offset a cost base that’s fundamentally out of sync with reality.

Fusion isn’t an isolated case - it’s a continuation of a pattern the sector has been warning about for years

“These facilities are essential public health infrastructure, yet they’re still being treated like discretionary services when it comes to funding and support. That gap is where organisations are falling. If government is serious about prevention, reducing pressure on the NHS and improving population health, then leisure can’t keep operating on the margins. It needs a sustainable model - not short-term sticking plasters.

“The sector also has a responsibility to be clearer, louder and more united in making that case. Because without change, this won’t be the last story like this.”

WIDER IMPACT

Several industry bodies, led by ukactive, have highlighted the impact that increasing costs are having on the sector. And it’s not just constantly rising energy prices that are a cause for concern. “The reality is the last two consecutive Budgets have hit businesses hard, from business rates to NICs. This means that operational pressures remain acute for facilities, while consumers face rising costs – and ultimately lose out,” said Huw Edwards, ukactive CEO.

Another industry body that has been actively working with sector partners to develop long-term sustainability for facilities is CIMSPA. Back in 2023, it partnered with STA to launch a survey into the impact of energy prices on the workforce. While the increases in employment costs are a huge worry, investing in the workforce is paramount in order to help build trust in public services.

Tara Dillon, CIMSPA CEO, said: “The loss of any operator or closure of any facility is always concerning, not just for the communities that they serve, but also for the talented and dedicated workforce in what is already a difficult jobs market.

“Our sector is vital to the economic recovery and we continue to support employers and our members with new guidance and resources to help them navigate a challenging financial landscape.”