On behalf of Opus Restructuring & Insolvency, Hilco Streambank has been appointed to actively seek interested parties in relation to the business and assets of “Project January” (or the “Group”), a leading UK high-street weight-loss
clinic.
The Group is a successful weight-loss and wellness advisory business that provides its services online and at circa 30 sites across the UK. Customers subscribe to the Group’s weight-loss programmes or therapies to gain access to treatments tailored
to the customer’s lifestyle through a series of one-on-one consultations with the Group’s staff of doctors, therapists, and psychologists. Pricing of the Group’s subscription programmes ranges from around £100 to £400
per month.
The Group currently provides weight-loss services to around 3,000 subscription patients. The Group leverages its relationships with number of partner organisations, through which it has secured exclusive deals for certain weight-loss therapies. The Group
has also recently adapted its offering to a remote service model in light of the COVID-19 pandemic. Management advise that this remote adaptation has proved highly successful.
The Group is Care Quality Commission (CQC) registered and employs approximately 60 staff, including those medically qualified. The Group utilises a sophisticated third-party regulatory management system for documenting its standard operating procedures
and processes, and centrally provides this system to its clinics across the UK. The intellectual property of the Group has historically been franchised, and franchise income is still being generated. Assets available include the Group’s brand,
leases to c. 30 prominent retail locations, and physical assets with a book value of c. £3m.
In financial year ending April 2019, the Group generated revenues of c. £4.5m, a gross profit margin of over 80%, but made an overall loss. In the financial year ending April 2018, the Group generated revenues of c. £4m, a gross profit margin
of over 80%, and made profits in the hundreds of thousands.
The opportunity presents a significant opportunity for a turnaround professional or trade party to restructure, preserve and grow the value in business and asset base.