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It underwent an organization voluntary arrangement, during which 26 of its 117 clubs had been closed completely, and Caledonia invested £22 million to retain ownership of the corporate. Permira bought a stake within the company in August 2005, which valued the business at £1.89 billion. This was later followed by a sequence of personal fairness gross sales of the corporate starting in February 2003 to the private equity companies Candover and Cinven. This merger with Granada led to the company rebranding as Gala Clubs later that year.
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