Another one bites the dust: 24 Hour Fitness files for bankruptcy

Firm has secured $250M to help it reopen certain locations

National /
Jun.June 15, 2020 04:23 PM
24 Hour Fitness CEOTony Ueber (Getty, LinkedIn)

24 Hour Fitness CEOTony Ueber (Getty, LinkedIn)

The national gym chain 24 Hour Fitness has become the latest company to file for bankruptcy in the wake of the coronavirus pandemic.

The firm said in its filing that it has landed $250 million to help reopen some of its locations and expects most to be open by the end of June, according to CNN. However, it will reopen as a smaller chain after permanently closing 100 gyms in 14 states. It has about 300 clubs still open.

Mid-level gyms like 24 Hour Fitness have been struggling in recent years as customers flock to cheaper chains like Planet Fitness, boutique fitness classes like OrangeTheory or at-home options like Peloton.

Gold’s Gym, a chain comparable to 24 Hour Fitness, filed for bankruptcy in May, and the owner of New York Sports Club has warned the company is considering bankruptcy as well.

Tony Ueber, CEO of 24 Hour Fitness, said in a statement that the pandemic was directly to blame for his firm’s bankruptcy filing.

“If it were not for Covid-19 and its devastating effects, we would not be filing for Chapter 11,” he said. “We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future.” [CNN] — Eddie Small


Related Articles

arrow_forward_ios
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Manhattan job losses in Q3 worst of any large county in the US
Manhattan job losses in Q3 worst of any large county in the US
R&B Realty's Aron Rosenberg and Maverick's David Aviram of Maverick with 28 West 36th Street and 32 West 39th Street (Google Maps)
Midtown landlord sues to stop foreclosure by Maverick
Midtown landlord sues to stop foreclosure by Maverick
HSBC COO John Hinshaw (Getty, iStock)
HSBC to shrink its office footprint amid shift to WFH
HSBC to shrink its office footprint amid shift to WFH
The bankruptcy filing was made to protect the value of the Denizen. (The Denizen)
All Year LLC opts for bankruptcy to stop Bushwick foreclosure
All Year LLC opts for bankruptcy to stop Bushwick foreclosure
New Yorkers can enjoy going to the movies again on March 5. (iStock)
Showtime: NYC movie theaters to reopen
Showtime: NYC movie theaters to reopen
David Umansky of Civic Builders and 720 Livonia Ave in Brooklyn (Photos via Google Maps, Civic Builders)
Charter school developer buys Brooklyn site out of bankruptcy
Charter school developer buys Brooklyn site out of bankruptcy
666 Greenwich Avenue and David Koraca (Photo via StreetEasy, Goldman Sachs, Facebook)
Convicted fraudster illegally occupied posh West Village rental: lawsuit
Convicted fraudster illegally occupied posh West Village rental: lawsuit
Restaurants can have more guests starting February 16. (Getty)
Indoor dining capacity upped to 35% in New York City
Indoor dining capacity upped to 35% in New York City
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...