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

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

TRD NATIONAL /
Jun.June 15, 2020 06:00 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
Photo illustration of Mayor Carlos Gimenez (Getty, iStock)

Restaurants, gyms to close again in Miami-Dade

Restaurants, gyms to close again in Miami-Dade
Scott Sandelin, Ben Potts, Michelle Bernstein, Felix Bendersky and Aaron Butler (Beaker & Gray, Twitter, F&B, Linkedin)

Restaurants, bars in a “scary situation” as restrictions ramp up

Restaurants, bars in a “scary situation” as restrictions ramp up
Map of priciest condo sales and Oceanside Fisher Island (Credit: Google Maps and Redfin)

Miami condo sales flatten at the end of June

Miami condo sales flatten at the end of June
Photo illustration of Ron DeSantis (Getty, iStock)

DeSantis announces $250M rental, mortgage assistance fund

DeSantis announces $250M rental, mortgage assistance fund
Developers are still holding off on starting new construction projects

South Florida construction starts plummet again in May

South Florida construction starts plummet again in May
Dan Kodsi and Legacy Hotel & Residences

For future pandemics, Miami Worldcenter plans $60M health center

For future pandemics, Miami Worldcenter plans $60M health center
Pending sales and closings were down in May throughout the tri-county region (iStock)

South Florida home sales cut in half in May

South Florida home sales cut in half in May
Map of priciest condo sales and Bayview Fisher Island unit 5342 (Google Maps, Compass. JJW Construction)

Miami condo sales dollar volume continues to drop

Miami condo sales dollar volume continues to drop
arrow_forward_ios

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

Loading...