Flywheel Sports and its affiliates have filed for bankruptcy, joining a list of fitness studio operators crushed by the coronavirus.
The spin-cycle studio brand’s Chapter 7 filing would lead to liquidation of its assets. The documents were filed late Monday with the U.S. Bankruptcy Court in New York.
Todd Meyers, attorney with Kilpatrick Townsend & Stockton of New York, is handling the case for Flywheel. He confirmed the Chapter 7 filing but declined to comment further.
Flywheel Sports’ estimated assets are between $10 million and $50 million, and its estimated liabilities are between $50 million and $100 million, according to the court documents.
Established in 2010 in New York’s Flatiron District, Flywheel Sports grew rapidly. As of 2017, it had 42 studios across the nation and employed 1,200 people, according to the company.
But the indoor-cycling studio operator ran into financial problems a few years before the pandemic and had been looking for a buyer.
Town Sports International, the owner of New York Sports Clubs, reportedly agreed to purchase Flywheel Sports in January, aiming to use acquisition financing to pay down a $200 million loan coming due in November.
But the deal fell through, and Town Sports itself filed for bankruptcy earlier this month.
Fitness clubs have been among the most affected businesses during the pandemic. Gold’s Gyms International and 24 Hour Fitness Worldwide also filed for bankruptcy this year.