Planet Fitness has hired a progressive new CEO known for pushing DEI-based hiring, despite the backlash over its decision to ban a member who reported a ‘trans woman‘ shaving in a female locker room.
Colleen Keating will take over as head of the gym chain on June 10, following a ten month search to find a successor after former CEO Chris Rondeau stepped down.
Keating will move over from a role as CEO for FirstKey Homes, during which time she instituted mandatory inclusivity training and ‘hiring through a DEI lens’.
News of her appointment saw shares of the beleaguered fitness franchise plunge by three percent, CNBC reports.
Planet Fitness has hired progressive new CEO Colleen Keating who is known for pushing DEI-based hiring, despite the backlash after it banned a member who photographed and reported a ‘trans woman’ using a female locker room
Patricia Silva was banned from Planet Fitness after she shared a photo of ‘a man with a penis’ who was using the female locker room at her gym in Fairbanks, Alaska
After her encounter, Silva took to Facebook to tell people about her experience and recounted her argument with the ‘transgender’ individual
The company has struggled to recover from the controversy around its decision to ban member Patricia Silva after she outed a trans woman using a female locker room.
Silva claimed there was ‘a man shaving in a women’s bathroom’ at her gym in Fairbanks, Alaska last month and snapped a photo of the individual.
She complained to staff at the facility but ended up having her membership revoked for violating Planet Fitness’ policy banning photos and video in the locker room.
Amid the backlash Planet Fitness said although some members may feel uncomfortable sharing facilities, ‘this discomfort is not a reason to deny access to the transgender member.’
The decision saw customers rushing to cancel their memberships with a staggering $400 million was wiped off its value in just five days.
At least 28 locations were then hit with bomb threats amid the fallout over the franchise’s trans inclusive locker room policy.
Keating’s arrival comes as the company is still struggling to repair the damage done by the controversy.
The company’s valuation plummeted from $5.3 billion on March 14 to $4.9 billion on March 19, before rallying slightly
Planet Fitness’ policy stated that ‘discomfort is not a reason to deny access to the transgender member.’
Shares have also been plummeting since former CEO Chris Rondeau stepped down in September, according to CNBC which reports a 17 percent drop this year.
Keating is ‘a proven executive’, according to a Planet Fitness press release which states she has more than three decades of experience across hospitality, real estate, operations and franchise management, with ‘expertise in brand management and leading customer-facing organizations’.
During her tenure at FirstKey Homes, Keating was responsible for establishing a Diversity and Inclusion Board in the wake of the police killings of George Floyd and Breonna Taylor.
She also implemented unconscious bias training and hired the company’s first senior DEI manager to ‘to focus on embedding DE&I into our business practice’.
‘We continually strive to diversify our workforce, hiring through a DE&I lens to find talent in multiple locations and backgrounds,’ the company’s 2022 corporate social responsibility report states.
‘Colleen’s deep operational knowledge, strategic mindset and understanding of large-scale franchise operations and consumer-facing brands made her stand out among the candidates considered,’ said Stephen Spinelli Jr., Chairman of the Board.
News of Keating’s appointment saw shares of the beleaguered fitness franchise plunge by three percent
A staggering $400 million was also wiped off its value in just five days after details of the controversy emerged
‘She also has a proven track record of building results-oriented teams and instilling cultures that put a premium on operational excellence and rigor, which we believe will be additive to Planet Fitness.
‘We are confident that Colleen is an exceptional leader with the desired skills, experience and culture-first mindset necessary to accelerate Planet Fitness’s next phase of growth.’
The company will discuss Keating’s appointment along with its first quarter financial results on its earnings call on May 9.
