24 Hour Fitness files for bankruptcy, closes over 130 gyms amid coronavirus pandemic
24 Hour Fitness announced Monday the company is filing for Chapter 11 bankruptcy after having to close more than 130 gym locations around the country amid the coronavirus pandemic.
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11. With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders,” Chief Executive Officer Tony Ueber said in a statement.
Once approved in court, the company expects to secure approximately $250 million in debtor-in-possession (DIP) financing, which along with its cash from operations, will allow 24 Hour Fitness to continue operations and reopen its remaining clubs.
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24 Hour Fitness, an industry leader for more than 30 years, said Sunday it’s permanently closing