24 Hour Fitness files for bankruptcy, closes 100 gyms
National gym chain 24 Hour Fitness company filed for bankruptcy Monday, announcing plans to close 100 gyms permanently in 14 states.
(CNN) – National gym chain 24 Hour Fitness company filed for bankruptcy Monday, announcing plans to close 100 gyms permanently in 14 states.
The pandemic forced its workout centers shut for months.
"If it were not for Covid-19 and its devastating effects, we would not be filing for Chapter 11," CEO Tony Ueber said. "We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future."
About 300 of the 24 Hour Fitness clubs will remain as the company comes out of bankruptcy.
Competitor Gold's Gym filed for bankruptcy in May in the wake of rapidly changing business conditions.
Because of coronavirus, there has been a surge of in-home fitness alternatives like Peloton, while others have been choosing lower-cost alternatives like Planet Fitness.
The pandemic has convinced others to choose boutique studio classes like Orange Theory instead.
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