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New York Sports Club owner Town Sports International filed for Chapter 11 bankruptcy on Monday, with several gyms nationwide still closed by the coronovirus epidemic.
The company joins several gym operators battling the Kovid-19 crisis, finding ways to adapt but struggles to do so. Gould’s Gym International sought court protection from its creditors in May, and filed a 24-hour fitness for bankruptcy in June. Since homegrown consumers had to work at home, appliance manufacturers like peloton thrive.
“Our members will not recognize a break in service,” Town Sports said in a statement on its website. “Town Sports International is not going out of business. Restructuring is the best way to properly respond to the Kovid-19 epidemic, with the long-term goal of emerging as a thriving powerhouse … of an even stronger company. in the form of.”
The company, whose fitness chain also includes Boston Sports Club, warned that a filing was imminent, as it tried to strike a refinance deal with its lenders. Due to its decline, debt was coming in, and its liquidity was drying up.
Town Sports, which has about 600,000 members, said it does not plan to permanently close any of its nearly 200 locations. It began in 1973 as a small chain of squash clubs in New York City.
The company listed liabilities of $ 500 million to $ 1 billion in its bankruptcy filing.
New York and New Jersey allowed gyms to resume earlier this month, but with reduced capacity and other safety precautions.