24 Hour Fitness Files for Bankruptcy Amid Onslaught of Gym Closures
- Company lined up $250 million in DIP financing from creditors
- 24 Hour closed all its gyms in mid-March to curb virus spread
A 24 Hour Fitness gym in Fairfax, Virginia.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
24 Hour Fitness Worldwide Inc. sought court protection from its creditors, unable to keep up with debt payments after the Covid-19 pandemic shut down gyms nationwide.
The fitness chain’s Chapter 11 petition was filed in Delaware, court papers show. Such a restructuring allows a company to keep operating while it works out a plan to pay its creditors and ease its debt load of $1.4 billion, plus lease obligations.