24 Hour Fitness Officially Files for Chapter 11 Bankruptcy
The global health crisis has ravaged businesses around the world. The health fallout alone has been devastating with so many lives lost, but it has also taken a toll on many businesses, big and small.
One such business is the gym industry. With the sickness so easily transmittable, places like fitness clubs and gyms had to shut down when quarantines were put in place. Stateside many popular gym chains suffered, including the Gold’s Gym, a classic stomping ground for bodybuilders.
Now it appears that another gym chain is suffering the same fate.
24 Hour Fitness has been forced to file for Chapter 11 Bankruptcy. To make matters worse, the chain has been forced to shut down 100 gyms across the country in order to account for costs.
This comes as a crushing blow to the fitness industry as 24 Hour Fitness is one of the most popular chains in the country. CEO Tony Ueber explained how the global health crisis has affected the business.
“IF IT WERE NOT FOR COVID-19 AND ITS DEVASTATING EFFECTS, WE WOULD NOT BE FILING FOR CHAPTER 11. WE EXPECT TO HAVE SUBSTANTIAL FINANCING WITH A PATH TO RESTRUCTURING OUR BALANCE SHEET AND OPERATIONS TO ENSURE A RESILIENT FUTURE.”
UEBER WENT ON TO SAY THE RESTRUCTURING WOULD ENTAIL “REINVESTMENT IN OUR EXISTING CLUBS, OPENING NEW CLUBS AND INTRODUCING SEVERAL NEW INNOVATIVE PRODUCTS AND SERVICES.”
This is certainly a position Ueber and 24 Hour Fitness never saw coming. So many other businesses have been devastated in a similar matter since the quarantine order. As it stands now there will be many businesses, most of them small and independent, that will see their doors shut forever. While it may not be a definite casualty, this is sure to set back 24 Hour Fitness a long way.
The global health crisis has ravaged businesses around the world. The health fallout alone has been devastating with so many lives lost, but it has also taken a toll on many businesses, big and small.
One such business is the gym industry. With the sickness so easily transmittable, places like fitness clubs and gyms had to shut down when quarantines were put in place. Stateside many popular gym chains suffered, including the Gold’s Gym, a classic stomping ground for bodybuilders.
Now it appears that another gym chain is suffering the same fate.
24 Hour Fitness has been forced to file for Chapter 11 Bankruptcy. To make matters worse, the chain has been forced to shut down 100 gyms across the country in order to account for costs.
This comes as a crushing blow to the fitness industry as 24 Hour Fitness is one of the most popular chains in the country. CEO Tony Ueber explained how the global health crisis has affected the business.
“IF IT WERE NOT FOR COVID-19 AND ITS DEVASTATING EFFECTS, WE WOULD NOT BE FILING FOR CHAPTER 11. WE EXPECT TO HAVE SUBSTANTIAL FINANCING WITH A PATH TO RESTRUCTURING OUR BALANCE SHEET AND OPERATIONS TO ENSURE A RESILIENT FUTURE.”
UEBER WENT ON TO SAY THE RESTRUCTURING WOULD ENTAIL “REINVESTMENT IN OUR EXISTING CLUBS, OPENING NEW CLUBS AND INTRODUCING SEVERAL NEW INNOVATIVE PRODUCTS AND SERVICES.”
This is certainly a position Ueber and 24 Hour Fitness never saw coming. So many other businesses have been devastated in a similar matter since the quarantine order. As it stands now there will be many businesses, most of them small and independent, that will see their doors shut forever. While it may not be a definite casualty, this is sure to set back 24 Hour Fitness a long way.