A cautious welcome to a rescue deal for the stricken gym operator Fitness First has been given by property landlords that could see them claim a share of profits in the future business.

KPMG has recently published details of a proposed Company Voluntary Agreement (CVA) that would allow Fitness First to walk away from 81 of its 150 clubs as the UK parent company looks to manage a £600m debt mountain.

If accepted by the company’s creditors, the KPMG proposals could see the chain’s 120 commercial property landlords share up to around £5m depending on the future profitability of the slimmed down company.

Fifty-seven successful sites will move to monthly rents and five marginal sites will see their rent cut to 65% of existing terms for the three years, before reverting to market rents thereafter. A further 18 sites held in alternative Fitness First companies are unaffected. The CVA proposes the 81 disposed sites receive 55% rent for six months, even if a new tenant is found, with any business rate liabilities picked up when the six months elapses.

Demand for the unwanted sites is believed to be high, with budget gym operators expressing a strong interest. Landlords and unsecured creditors will vote on the proposed CVA on 20 June.

Liz Peace, chief executive of the British Property Federation, said: “Fitness First is clearly a business in some distress that requires restructuring, and landlords will consider the CVA offer on a business-by-business and a site-by-site basis.

“However, it is extremely welcome to see a ‘claw-back’ arrangement included in this CVA and we hope that this further establishes a precedent that the use of these provisions should be included as a matter of course in future CVAs.

“It is only fair, should creditors accept the CVA, that having taken a financial hit and allowed Fitness First to avoid administration landlords’ shareholders, many of whom are pensioners, are compensated if the company returns to health.”