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24 Hour Fitness Prepares for Bankruptcy While Gyms Start to Open

  • Company aims to cut debt, negotiate leases to stay in business
  • Gyms are starting to re-open under local and state guidelines
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Source: Getty Images

Gym owner 24 Hour Fitness Worldwide Inc. is preparing for a potential bankruptcy to cut its debt as it re-opens locations across the country with precautions in place for social distancing.

The operator of more than 430 mid-tier gyms is in talks with investors over the terms of a loan that would keep the company operating through a court restructuring, according to people with knowledge of the situation. The proposed Chapter 11 filing would cut 24 Hour’s borrowings by swapping debt for equity and handing control to lenders, said the people who asked not to be named discussing a private matter.