Health club fails to recover from legionnaire's outbreak (From The Northern Echo)

Health club fails to recover from legionnaire's outbreak

6:03am Friday 27th April 2007 in

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A HEALTH club at the centre of a legionnaire's disease outbreak last year has gone into liquidation, with the loss of 30 jobs.

Springs Health Club, in Sunderland, blamed adverse publicity, and a drop in membership due to a lack of public confidence, for its demise.

Springs Sanctuary Spa (Sunderland) Ltd said the club had been operating at a loss for more than six months, and yesterday morning the company instructed Tenon Recovery to handle the liquidation.

Other Springs Health Clubs in South Shields, Gateshead, Newcastle and Hartlepool are not affected by the liquidation and will continue to operate as separate businesses.

Bosses last night pledged to do "all they can" to find alternative employment for the Sunderland club's 30 staff, either within the group or elsewhere.

Springs in Sunderland closed its spa and pool last September after more than 70 members caught the legionella bug.

The vast majority of victims suffered from pontiac fever, which is caused by the legionella infection, while two went on to contract the potentially fatal legionnaire's disease.

Yesterday, chief executive Stan Henry said the company had been unable to recover from the outbreak, which was well documented in the local press, and financial problems had forced its closure.

He said liquidation was the only realistic option.

"Loss of public confidence has resulted in substantial losses in membership which has meant that the club's income has fallen below a level at which we can discharge our liabilities thus we are not able legally to continue trading," said Mr Henry.

"Even though the club has incurred losses since last September, we remained open because of the members who were loyal to the club and in the hope that those who left would rejoin.

"This hasn't happened and while we are grateful to the members who remained with us, we have been forced to the reluctant conclusion that liquidation entailing closure is the only realistic option."

The Sunderland club was built in 1998, at a cost of about £4m.

Mr Henry said it was too early to say what would happen to the club premises after the liquidation