“If it were not for Covid-19 and its devastating effects, we would not be filing for Chapter 11,” CEO Tony Ueber said in a statement. “We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future.”
He also said the restructuring will result in “reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services.” 24 Hour Fitness, which began in 1985, is a privately held company.
Gold’s Gym, a similar chain to 24 Hour Fitness, filed for bankruptcy in May. The company said the virus affected it “deeply and in many ways,” which included the temporary closures of many of its 700 global gyms. Gold’s permanently closed 30 locations in April and expects to emerge from bankruptcy in August.