24 Hour Fitness closes 'more than 100' gyms – files for Chapter 11 protection
Leisure Opportunities
Job search
Job Search
see all jobs
Latest job opportunities
Everyone Active
Competitive
South Oxhey Leisure Centre, Watford
Coach Gyms
£15k basic + commission + Bonus
Leeds / Harrogate, UK
University of Leeds
£42,149 - £50,296 p.a + benefits
Leeds
University of Essex
Competitive
Wivenhoe Park, Colchester, Essex
énergie Fitness
Competitive
Cheltenham, UK

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

Job opportunities
Impulse Leisure
up to £25,000pa + benefits + relocation package may be considered
location: Thurrock, Essex, United Kingdom
more jobs

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"We’ve made the difficult decision to close more than 100 clubs that were either out-of-date or in close proximity to other 24 Hour Fitness locations," Ueber said.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

More News

1 - 15 of 43,469
15 Oct 2021
Matrix and Intelivideo have signed a strategic partnership, which will see Intelivideo's fitness content integrated into Matrix's premium commercial equipment. Intelivideo's on-demand and trainer-led programming ... More
15 Oct 2021
Nadine Dorries, the recently appointed secretary of state for digital, culture, media and sport at the DCMS, has promised that the government will place sport ... More
13 Oct 2021
Mindbody has announced it's buying ClassPass, the consumer wellness subscription service that enables people to use a range of gyms, studios and wellness facilities for ... More
13 Oct 2021
Construction work has begun on a £13m redevelopment project which will look to transform the V&A Museum of Childhood into the UK’s "premier national museum" ... More
13 Oct 2021
Tanni Grey-Thompson has outlined her vision on how the physical activity sector can play "the fullest role in improving the health of the nation". Speaking ... More
13 Oct 2021
The Global Health & Fitness Alliance (GHFA) has revealed the makeup of its inaugural nine-member Advisory Council, which will oversee the alliance's activities. GHFA is ... More
Les Mills
Les Mills
13 Oct 2021
The 40th Annual IHRSA International Convention & Trade Show (IHRSA 2021) begins today in Dallas, Texas, US, offering both an in-person and virtual programme and ... More
12 Oct 2021
A new study has suggested that strength training can result in people losing around a similar amount of body fat as they do when undertaking ... More
11 Oct 2021
Basic-Fit has officially opened its 1,000th club, with the launch of a new site in the Dutch city of Tilburg. It marks a significant landmark ... More
11 Oct 2021
Up to £30m will be invested in refurbishing thousands of public tennis courts in the most deprived parts of the UK. The package, which will ... More
11 Oct 2021
Health club operator Life Time Group has become a publicly traded company again, after it was listed on the New York Stock Exchange (NYSE). An ... More
07 Oct 2021
Creating workout experiences will be the main theme of this year's Retention Convention, which will be held as an online event on 9 December 2021. ... More
FreeMotion Fitness
FreeMotion Fitness
07 Oct 2021
Marg Mayne will stand down as CEO of Mytime Active next year, after more than seven years in the role. Mayne joined Mytime Active as ... More
05 Oct 2021
French car manufacturer Citroën and hotel brand Pullman Hotels & Resorts have partnered to create an autonomous "urban mobile platform" concept, designed to allow people ... More
04 Oct 2021
British Prime Minister Boris Johnson has thrown his weight behind plans to build an Eden Project North visitor attraction in the Lancashire seaside town of ... More
Floors 4 Gyms / TVS Sports Surfaces
Floors 4 Gyms / TVS Sports Surfaces
1 - 15 of 43,469
FIBO Exhibition
FIBO Exhibition