Another one bites the dust: 24 Hour Fitness files for bankruptcy
Firm has secured $250M to help it reopen certain locations
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