The 47-year-old company owns several gym chains, including the New York Sports Club, Boston Sports Club and Lucille Roberts. The huge drop in revenue during the epidemic caused it to temporarily shut down for several months. According to a statement posted to its members, the purpose of the Chapter 11 filing is to reduce its debt load and “strengthen the company’s capital structure”.
Last week, it said in its most recent earnings report that most of its locations remained closed.
“We expect the Kovid-19 epidemic to negatively affect our operating results in future times,” Town Sports said.
For now, Town Sports said it would not permanently close any of the nearly 200 gyms, which have about 605,000 members.
A number of gym chains have filed for bankruptcy in recent months, including Gold Gym and 24 Hour Fitness. Locations are slowly reopening with capacity restrictions and security measures. However, some people may get upset again, which benefited peloton (PTON). The at-home fitness company reported blockbuster earnings and several new products last week.