New York Sports Clubs Owner Plans to File for Bankruptcy
- Investment firm Kennedy Lewis backed away from financing deal
- Company will seek rent cuts, may need to close locations
This article is for subscribers only.
The owner of New York Sports Clubs is planning to file for bankruptcy as soon as Friday after talks collapsed over financing that would have helped the chain weather the Covid-19 pandemic. The shares fell 14% in New York trading.
Town Sports International Inc. had been negotiating a potential $80 million capital injection from Kennedy Lewis Investment Management, according to people with knowledge of the matter. The investment firm backed away after Town Sports realized it would need more money and asked for $200 million, said the people, asking not to be identified discussing a private matter.