Fitness First jobs at risk after debt deal with lenders The company will announce on Tuesday morning that its new chief executive, Chris Stone, has signed a three-month waiver agreement with Fitness First's main creditors. This will immediately save it from having to pay its £18m quarterly interest bill. But it is understood that the deal is more substantial than just a temporary reprieve and will see the equity of its main shareholder, BC Partners, nearly wiped out. The company will end up with zero debt on its balance sheet and controlled by its lenders. In recent months so-called vulture funds, which specialise in buying up distressed debt, have been circling Fitness First, which has £560m of debt. Oaktree and Marathon have acquired 77pc of the company's debt for an estimated 55p in the pound. The two funds have agreed to cancel the debt and inject £100m into the business, putting the company back on its feet, it is understood. However, it is likely that Oaktree and Marathon, in return for restoring the health of the balance sheet, would insist on a fairly radical restructuring at the company, which in Britain has been hit hard by consumers' disposable income being squeezed. In Australia, its biggest market, the chain has also been hurt by rivals, though in some countries, notably Germany, the company is still expanding profitably. An estimated third of the company's gyms in the UK, where it has 142 outlets, are unprofitable. If the company cannot renegotiate a lower rent with its landlords it is likely the company will have to close gyms. A company voluntary arrangement, which could wipe out its rental bills, has not been ruled out. Fitness First employs well over 1,000 staff in this country, and though it has a naturally high staff turnover redundancies are likely.