COVID- 19 has forced another retail chain to go out of business. 24 Hour Fitness has filed for bankruptcy after the COVID-19 pandemic forced its facilities to shut-down during the pandemic.
24 Hour Fitness is filing Chapter 11 filing and has secured $250 million in funding to help reopen some locations and looks to close most of its locations permanently. The gym just closed 100 US locations in 14 states. It currently has approximately 300 clubs remaining with future closures at various locations.
Since COVID-19 and stay at home orders Gold’s Gym filed for bankruptcy in May. Gold’s Gym was forced to temporarily closes 700 of its global locations.
Competition in the industry with lower priced gyms such as Planet Fitness, Inc. (PLNT) NYSE and in-home workout solutions offered online have driven down other chains membership growth, drastically reducing cash flow. Companies like Peloton Interactive, Inc. (PTON) Nasdaq, an in-home fitness cycle equipment maker that offers online spinning classes have also taken membership away from traditional health clubs for the sheer convenience of offering a workout that can be done at home.
24 Hour Fitness is a privately owned and operated fitness center chain headquartered in San Ramon, California. 24 Hour Fitness USA, Inc. announced Chris Roussos has been named Chief Executive Officer in 2017. 24 Hour Fitness® is owned by AEA Investors, Ontario Teachers’ Pension Plan and Fitness Capital Partners. During his career, Roussos has driven the success of fast-growth, multi-unit companies. Most recently, he served as CEO of Epic Health Services, and his rise from business entrepreneur to head of private equity backed companies has earned industry recognition. Source: https://www.24hourfitness.com/company/press_room/press_releases/2017/20170516.html
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