24 Hour Fitness, San Ramon, CA, formally announced the appointment of Mark Smith as CEO last Friday. On Monday, two longtime executives left the company, multiple sources told Club Industry.
Smith was named CEO earlier this year when New York-based AEA Investors, Ontario Teachers' Pension Plan, Toronto, and Fitness Capital Partners completed their acquisition of 24 Hour Fitness from Forstmann Little and Co. in May. News of the impending sale, reported at $1.85 billion, broke in April.
"I'm delighted to be working with the company's incredibly talented executives and all of our dedicated team members," Smith said in a statement. "Together, we will put this great company on a path to even greater success. I'd like to thank the leadership team for their support in a seamless transition from the acquisition to our next chapter."
A source told Club Industry that Smith's arrival at 24 Hour Fitness was delayed because of an issue with a work visa but added Smith had been running the company by phone and through new president Frank Napolitano. Smith, the former chairman of Town Sports International, New York, and his family had been relocating from Australia.
24 Hour Fitness had established an Office of the CEO that reported to the company's board of directors until Smith's arrival. The Office of the CEO comprised of Napolitano; Danny De La Rosa, president of clubs; and Patrick Flanagan, chief financial officer.
De La Rosa and Dean Pappous, regional vice president for 24 Hour, resigned Monday, effective immediately, sources told Club Industry. De La Rosa said in a 2011 press release that he began his 24 Hour Fitness career in San Diego "more than 30 years ago." Pappous began his career at 24 Hour in 1996 as a general manager, according to his LinkedIn profile.
A request to 24 Hour Fitness seeking comment about the two departures has not immediately been returned.
24 Hour Fitness is No. 2 on Club Industry's Top 100 Clubs list with an estimated $1.3 billion in 2013 revenue.