24 Hour Fitness Is Filing for Bankruptcy and Closing More Than 100 Gyms
Joining the growing number of popular chains hit hard by the ongoing coronavirus pandemic, 24 Hour Fitness announced today that it's filing for Chapter 11 bankruptcy. As part of its financial restructuring, the national gym chain is also planning on closing clubs that are out-of date or close to other locations.
In mid-March, 24 Hour Fitness closed all of its locations due to the pandemic. “If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," 24 Hour Fitness CEO Tony Ueber said in a statement. "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.”
In conjunction with its bankruptcy, 24 Hour Fitness expects to secure $250 million in financing, which will help it reopen the clubs it has decided to keep. But as some locations are starting to reopen in phases after temporarily shuttering their doors, 134 clubs across 14 states will be closing permanently. During the phased re-openings, all club members at every level will have access to any available location through the end of 2021.
All gyms will be implementing new safety protocols: To help with social distancing, 24 Hour Fitness will be limiting the number of people in the gym at one time. There will also be enhanced cleaning procedures throughout the day. In order to facilitate overnight cleaning, clubs won't be open for 24 hours. Instead, the new hours are from 5 a.m. to 9 p.m.
Want to know the status of your local 24 Hour Fitness club? Find the full list of club closures here and which clubs are reopening here.
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