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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

24 Hour Fitness to exit bankruptcy after confirming restructuring plan

24 Hour Fitness will emerge from chapter 11 bankruptcy this week after the gym chain secured backing for its restructuring plan.

The US Bankruptcy Court for the District of Delaware confirmed the group's plan, which will clear it to exit bankruptcy by 31 December 2020.

24 Hour Fitness has 'reduced' US$1.2bn of funded debt and will operate with an "optimised cost structure, leaner balance sheet, and improved real estate footprint". It's thought to have reduced its staffing headcount by around 60 per cent.

The fitness chain had been carrying US$1.3 billion in debt from a 2014 leveraged buyout by a group led by AEA Investors and the Ontario Teachers’ Pension Plan who acquired 24 Hour Fitness from private equity form, Forstmann Little & Co for a reputed US$1.85bn.

It has not yet been confirmed who is carrying the losses it has shed, nor the arrangement under which this debt has been 'reduced'.

The company filed for Chapter 11 protection in June, blaming it on a "disproportionate impact of the COVID-19 pandemic" on its operations.

Before the Chapter 11 announcement, 24 Hour Fitness had around 430 locations.

The Chapter 11 process has resulted in the closure of more than 100 clubs, leaving the company with a network of 286 clubs in the US – 91 are currently open, with 36 of 24 Hour Fitness’ 174 Californian clubs open for outdoor fitness.

Karl Sanft, COO, said outoor fitness is not designed to make money – "at best it’s a break-even operation", but it keeps employees in work and members engaged. Sanft said the company is also planning to launch outdoor fitness options in San Francisco.

In announcing the restructure, CEO, Tony Ueber, said: “With confirmation of the Plan, 24 Hour Fitness is firmly on track to emerge from chapter 11 by the end of the year.

"The Court’s decision reinforces the strength and promise of our business strategy and our plans for the future.

"Most importantly, it ensures we will continue our mission of helping to transform the lives of our members every day through fitness."

The compnay is offering all members full access to facilities until 31 March, regardless of membership category and has published a full plan for compensation for vendors, members and staff on a special website which you can view here..

24 Hour Fitness will emerge from chapter 11 bankruptcy this week after the gym chain secured backing for its restructuring plan.
HAF,FIT,IND,PTS
2020/THUMB346884_76685_889398.jpg
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News

24 Hour Fitness to exit bankruptcy after confirming restructuring plan

24 Hour Fitness will emerge from chapter 11 bankruptcy this week after the gym chain secured backing for its restructuring plan.

The US Bankruptcy Court for the District of Delaware confirmed the group's plan, which will clear it to exit bankruptcy by 31 December 2020.

24 Hour Fitness has 'reduced' US$1.2bn of funded debt and will operate with an "optimised cost structure, leaner balance sheet, and improved real estate footprint". It's thought to have reduced its staffing headcount by around 60 per cent.

The fitness chain had been carrying US$1.3 billion in debt from a 2014 leveraged buyout by a group led by AEA Investors and the Ontario Teachers’ Pension Plan who acquired 24 Hour Fitness from private equity form, Forstmann Little & Co for a reputed US$1.85bn.

It has not yet been confirmed who is carrying the losses it has shed, nor the arrangement under which this debt has been 'reduced'.

The company filed for Chapter 11 protection in June, blaming it on a "disproportionate impact of the COVID-19 pandemic" on its operations.

Before the Chapter 11 announcement, 24 Hour Fitness had around 430 locations.

The Chapter 11 process has resulted in the closure of more than 100 clubs, leaving the company with a network of 286 clubs in the US – 91 are currently open, with 36 of 24 Hour Fitness’ 174 Californian clubs open for outdoor fitness.

Karl Sanft, COO, said outoor fitness is not designed to make money – "at best it’s a break-even operation", but it keeps employees in work and members engaged. Sanft said the company is also planning to launch outdoor fitness options in San Francisco.

In announcing the restructure, CEO, Tony Ueber, said: “With confirmation of the Plan, 24 Hour Fitness is firmly on track to emerge from chapter 11 by the end of the year.

"The Court’s decision reinforces the strength and promise of our business strategy and our plans for the future.

"Most importantly, it ensures we will continue our mission of helping to transform the lives of our members every day through fitness."

The compnay is offering all members full access to facilities until 31 March, regardless of membership category and has published a full plan for compensation for vendors, members and staff on a special website which you can view here..

24 Hour Fitness will emerge from chapter 11 bankruptcy this week after the gym chain secured backing for its restructuring plan.
HAF,FIT,IND,PTS
2020/THUMB346884_76685_889398.jpg

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Elevate
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1 - 20 of 12,209
HCM Magazine
Editor's letter
At this scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to members
HCM Magazine
HCM People
Choose consistent over perfect. That’s the long game. It’s never too late to pivot to that mindset
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HCM Magazine
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Operators must be clear in their messaging so people find their way to a club they stick with. Try not to be all things to all people, and we can be successful at keeping them engaged
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ACTIV, a gym chain in Riyadh, Saudi Arabia, which operates separate gyms for men and women, has partnered with digital management solution expert Fisikal to create a custom branded experience for its members.
Featured supplier news
Featured supplier news: Virtuagym raises €3m investment to fuel innovation in health and fitness technology
Global fitness technology provider Virtuagym has raised a new €3m investment from Icecat, an Amsterdam-based technology company which invests in innovative technology organisations.
Featured operator news
Featured operator news: New partnership delivers swimming support to children with disabilities
A new partnership has been launched to provide inclusive swimming for children with mobility, visual and hearing disabilities.
Featured operator news
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Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Video Gallery
Sport Alliance GmbH
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
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Click on a catalogue to view it online
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Pendine Sands, Carmarthenshire
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