Dead weight: New York Sports Clubs owner files for bankruptcy

New York gyms began reopening in late August

TRD New York /
Sep.September 14, 2020 10:00 AM
Town Sports International CEO Patrick Walsh (Credit: JoJosh313; Getty)

Town Sports International CEO Patrick Walsh (Credit: JoJosh313; Getty)

The owner of New York Sports Clubs can’t run away from the pandemic.

Town Sports International — which owns sports clubs in New York, Boston, Philadelphia and Washington, D.C. — filed for Chapter 11 bankruptcy on Monday after the forced closure of gyms led to big losses in revenue, Reuters reported.

Operators of fitness centers have been hit hard by the pandemic lockdown as much of their revenue comes from monthly membership and personal training fees.

Gold’s Gyms International and 24 Hour Fitness Worldwide both filed for bankruptcy earlier this year.

Town Sports’ financial woes predate the pandemic, though. The company noted in its 2019 financial reports that it was facing mounting debt. It had hoped to buy Flywheel Sports, and use the acquisition financing to pay down a $200 million loan coming due in November. But that deal fell through.

Town Sports — which also owns Lucille Roberts, TMPL Gym and Total Woman Gym and Spa — has been considering Chapter 11 since as early as in April.

New York State finally allowed fitness centers to reopen last month at limited capacity, but many of Town Sports locations remain closed, according to Reuters. [Reuters] — Akiko Matsuda

 

Related Articles

arrow_forward_ios
The Martinique hotel (Wikipedia, Google Maps)

Operator of Martinique Hotel in Manhattan files for bankruptcy

Operator of Martinique Hotel in Manhattan files for bankruptcy
CEO Mark Tritton and 410 East 61st Street (Getty, Google Maps)

Bed Bath & Beyond will permanently close UES store

Bed Bath & Beyond will permanently close UES store
Councilwoman Carlina Rivera (Getty, iStock)

City Council extends restaurant, retailer lease protections

City Council extends restaurant, retailer lease protections
Burlington CEO Michael Sullivan and 2163 Tilden Avenue (Burlington via Facebook; Google Maps)

Burlington Coat Factory inks big lease in Brooklyn

Burlington Coat Factory inks big lease in Brooklyn
NYC Hospitality Alliance’s Andrew Rigie and Mayor de Blasio (Hospitality Alliance; Getty; iStock)

City can’t afford to bail out restaurants: de Blasio

City can’t afford to bail out restaurants: de Blasio
From left: Michael Fuchs, Aby Rosen, Brandon Singer and Michael Cody (Getty, iStock)

Aby Rosen, Michael Fuchs back new retail brokerage

Aby Rosen, Michael Fuchs back new retail brokerage
Matt Salem, KKR head of real-estate credit (Getty; KKR)

Hotel and retail mortgages dragging down recovery

Hotel and retail mortgages dragging down recovery
New York City restaurants have struggled to make rent throughout the pandemic but August marked a new high. Andrew Rigie of the NYC Hospitality Alliance (Getty; Institute of Culinary Education)

Rent struggles for NYC restaurants now worse than ever

Rent struggles for NYC restaurants now worse than ever
arrow_forward_ios

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

Loading...