The owner of New York Sports Clubs can’t run away from the pandemic.
Town Sports International — which owns sports clubs in New York, Boston, Philadelphia and Washington, D.C. — filed for Chapter 11 bankruptcy on Monday after the forced closure of gyms led to big losses in revenue, Reuters reported.
Operators of fitness centers have been hit hard by the pandemic lockdown as much of their revenue comes from monthly membership and personal training fees.
Gold’s Gyms International and 24 Hour Fitness Worldwide both filed for bankruptcy earlier this year.
Town Sports’ financial woes predate the pandemic, though. The company noted in its 2019 financial reports that it was facing mounting debt. It had hoped to buy Flywheel Sports, and use the acquisition financing to pay down a $200 million loan coming due in November. But that deal fell through.
Town Sports — which also owns Lucille Roberts, TMPL Gym and Total Woman Gym and Spa — has been considering Chapter 11 since as early as in April.
New York State finally allowed fitness centers to reopen last month at limited capacity, but many of Town Sports locations remain closed, according to Reuters. [Reuters] — Akiko Matsuda