The parent company of New York Sports Club and Boston Sports Club, has filed for Chapter 11 bankruptcy today.
A number of fitness facilities have struggled due to the ongoing Coronavirus pandemic as they have not been able to reopen their offerings to guests in accordance with continued lockdown regulations. The company had already warned that a filing was imminent and has tried to strike a new deal with its lenders, however as this has failed a filing has become inevitable and the company has listed liabilities of $500M to $1bn in its bankruptcy filing.
The company has commented that it doesn’t plan to permanently close any of its 200 locations but is looking to restructure the business to better suit the current climate.
“Our members will not recognize a break in service. Town Sports International is not going out of business. Restructuring is the best way to properly respond to the Covid-19 pandemic, with the long-term goal to engage as a thriving powerhouse… as an even stronger company.” stated Town Sports International on its website.
