24 Hour Fitness Has Filed for Bankruptcy
24 Hour Fitness while one of our favorite places to work out is now filing for bankruptcy. They announced it on twitter that they would be closing 100 locations across 14 states. Around 300 gyms will remain throughout the nation.
Amid this quarantine, countless facilities were forced to close down to help prevent the spread. Since then, many corporations and businesses have declared bankruptcy, such as Cirque du Soleil and Chuck E. Cheese. Last Monday, 24 Hour Fitness announced that they are going to undergo financial reconstruction through a voluntary chapter 11 filing.
The announcement on twitter:
“This process gives us the opportunity to reposition 24 hour fitness by eliminating debt and closing clubs that were either out-of-date or in close proximity with other 24 hour fitness clubs.”24 Hour Fitness
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11,” CEO Tony Ueber said in a statement.
The privately owned and operated company has also acquired $250 million in funding, which will help its reconstructing and reopening.
Under state and local government, and public health agency guidelines they’ve begun to reopen gyms nationwide. They expect most of their locations to open up by the end of June. While the gyms remain open, all club members will have access to any of the facilities, no matter the membership level.
“As a result of this restructuring, we will gain financial strength and flexibility to accelerate our business transformation plan, which includes reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services that will enhance the fitness experience for our club members and guests fro many years to come.”Tony Ueber, CEO
Cover Photo: 24 Hour Fitness
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