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Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

News

24 Hour Fitness closes 'more than 100' gyms – files for Chapter 11 protection

Health club chain 24 Hour Fitness has filed for Chapter 11 bankruptcy protection, blaming the "disproportionate impact of the COVID-19 pandemic" on its operations.

There have been rumours the company might be forced to make this move for some weeks.

“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," said CEO Tony Ueber.

"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."

As part of the process, the operator will close up to a quarter of its existing gyms.

"We’ve made the difficult decision to close more than 100 clubs that were either out-of-date or in close proximity to other 24 Hour Fitness locations," Ueber said.

Before the Chapter 11 announcement, the company had around 430 locations.

He added that 24 Hour Fitness will "continue to reopen existing clubs in a phased approach" as lockdown measures are eased and that it expects to reopen the "majority of its footprint by the end of June".

In conjunction with the Chapter 11 process, the company said it expects to secure around US$250m in debtor-in-possession (DIP) financing.

Subject to approval from the courts, the DIP financing – combined with cash from operations – should provide sufficient liquidity and allow the company to continue operations, including club reopenings, without interruption during the Chapter 11 process.

“We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future," Ueber added.

"The COVID-19 environment has proved that attention to health and fitness is more important now than ever before.

"As a result of this restructuring, we will gain financial strength and flexibility to accelerate our business transformation plan, which includes reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services that will enhance the fitness experience for our club members and guests for many years to come.”

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Health club chain 24 Hour Fitness has filed for Chapter 11 bankruptcy protection, blaming the "disproportionate impact of the COVID-19 pandemic" on its operations.
PTS,HAF,FIT,IND
2020/THUMB345696_728089_378808.jpg
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News

24 Hour Fitness closes 'more than 100' gyms – files for Chapter 11 protection

Health club chain 24 Hour Fitness has filed for Chapter 11 bankruptcy protection, blaming the "disproportionate impact of the COVID-19 pandemic" on its operations.

There have been rumours the company might be forced to make this move for some weeks.

“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," said CEO Tony Ueber.

"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."

As part of the process, the operator will close up to a quarter of its existing gyms.

"We’ve made the difficult decision to close more than 100 clubs that were either out-of-date or in close proximity to other 24 Hour Fitness locations," Ueber said.

Before the Chapter 11 announcement, the company had around 430 locations.

He added that 24 Hour Fitness will "continue to reopen existing clubs in a phased approach" as lockdown measures are eased and that it expects to reopen the "majority of its footprint by the end of June".

In conjunction with the Chapter 11 process, the company said it expects to secure around US$250m in debtor-in-possession (DIP) financing.

Subject to approval from the courts, the DIP financing – combined with cash from operations – should provide sufficient liquidity and allow the company to continue operations, including club reopenings, without interruption during the Chapter 11 process.

“We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future," Ueber added.

"The COVID-19 environment has proved that attention to health and fitness is more important now than ever before.

"As a result of this restructuring, we will gain financial strength and flexibility to accelerate our business transformation plan, which includes reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services that will enhance the fitness experience for our club members and guests for many years to come.”

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Health club chain 24 Hour Fitness has filed for Chapter 11 bankruptcy protection, blaming the "disproportionate impact of the COVID-19 pandemic" on its operations.
PTS,HAF,FIT,IND
2020/THUMB345696_728089_378808.jpg

News

Fitness tech firm JaxJox will accelerate the launch of its connected home fitness solution, InteractiveStudio,
Snap Fitness has ended its agreement with its master franchisee for the UK and Ireland
The UK government has provided a lengthy response to a petition which demanded that gyms
Gym and health club operators in Germany are believed to be considering joint legal action
The latest study into the infection rates recorded at gyms has shown that the average
A new mobile fitness platform delivers personal training sessions to people at home by combining
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Europe's largest gym chain, Basic-Fit, has published its trading update for the first nine months
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Dr Darshan Shah

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People
I think the cost of financing the Fitness World deal was more than compensated for by the £20m Fitness World brought in while the UK gyms were closed
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It felt as though we were building a new business
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CEO global markets, Les Mills
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Luca Maggiora

Co-founder, House of Wisdom
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Opinion
promotion
In a post-Covid world, member experience is more important than ever before. Your customers’ expectations have been heightened as the coronavirus continues to dominate our everyday lives.
Opinion: Why member experience is more important now than ever before
Opinion
promotion
Our world has changed since March and together, we are learning and adapting to how this sector can continue to thrive in this COVID conscious world.
Opinion: Why fitness clubs and facilities need to evolve in a COVID-conscious world
Featured supplier news
Featured supplier: Power Plate kicks off campaign to support fitness industry deliver health and wellness in one solution
Power Plate, the global leader in whole-body vibration training equipment, is encouraging its community to stay fighting fit this winter with a campaign intended to encourage comfort and confidence, as well as boosting health and wellness.
Featured supplier news
Featured supplier: Matrix takes its partnership with Renault Sport racing team up a gear
Matrix Fitness, the commercial brand of Johnson Health Tech, has announced the renewal of its long term partnership with the Renault F1 Team.
Video Gallery
Temple Gym - Nautilus Equipment
Core Health & Fitness
Temple Gym - Nautilus Equipment Read more
More videos:
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Company profiles
Company profile: Healthcheck Services Ltd
Here at Healthcheck Services, we want to empower you, your clients & your staff to ...
Supplier Showcases
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Catalogue Gallery
Click on a catalogue to view it online
Directory
Red Light Therapy
 Red Light Rising: Red Light Therapy
Fitness Software
FunXtion International BV: Fitness Software
Management software
fibodo Limited: Management software
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Direct debit solutions
Harlands Group: Direct debit solutions
Member feedback software
AskNicely: Member feedback software
Wearable technology solutions
MyZone: Wearable technology solutions
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Design consultants
Zynk Design Consultants: Design consultants
Fitness equipment
TRX Training: Fitness equipment
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
03-06 Nov 2020
Online,
Diary dates
12 Nov 2020
Virtual, United States
Diary dates
17 Nov 2020
Loughborough University, Loughborough, United Kingdom
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates
03-03 Dec 2020
Virtual,
Diary dates
08-09 Dec 2020
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02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
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ExCeL London, London, United Kingdom
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01-07 Dec 2022
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