24 Hour Fitness Worldwide Inc. declared for bankruptcy Monday, citing the "disproportionate impact" of the COVID-19 pandemic. The gym chain said it expects to secure about $250 million in debtor-in-possession financing, which should provide the company with enough liquidity to continue operations, including phased reopenings of its fitness clubs. The company expects to to reopen most of its clubs by the end of June. "We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future," said Chief Executive Tony Ueber. Late Sunday, the company said that will permanently close 100 locations, and The Wall Street Journal had reported in May that the company was looking to stay afloat during a possible Chapter 11 filing.
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24 Hour Fitness permanently shuts nearly a quarter of its gyms24 Hour Fitness Worldwide Inc. has permanently closed 100 locations, the gym chain said on its website. About a third of the closures are in California. The closures come after the Wall Street Journal reported last week that the company has laid off a number of workers in multiple states, as it struggles with the financial impact of gym closures due to the coronavirus pandemic. The Journal previously reported 24 Hour Fitness was seeking financing to stay afloat during a possible Chapter 11 bankruptcy filing. Last week, the company said it hoped to have 50% of its locations back open by June. Prior to the closures, 24 Hour Fitness had more than 400 gyms in 14 states, with around 22,000 employees.
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24 Hour Fitness permanently shuts nearly a quarter of its gyms24 Hour Fitness Worldwide Inc. has permanently closed 100 locations, the gym chain said on its website. About a third of the closures are in California. The closures come after the Wall Street Journal reported last week that the company has laid off a number of workers in multiple states, as it struggles with the financial impact of gym closures due to the coronavirus pandemic. The Journal previously reported 24 Hour Fitness was seeking financing to stay afloat during a possible Chapter 11 bankruptcy filing. Last week, the company said it hoped to have 50% of its locations back open by June. Prior to the closures, 24 Hour Fitness had more than 400 gyms in 14 states, with around 22,000 employees.
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