New York Sports Clubs Owner Goes Bankrupt After Gym Shutdown
- Town Sports seeks Chapter 11 after gyms closed in pandemic
- Firm lists estimated liabilities of $500 million to $1 billion
Photographer: Spencer Platt/Getty Images
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The owner of the New York Sports Clubs and Lucille Roberts gyms sought bankruptcy protection from its creditors, unable to keep up with debt payments after the pandemic shut its gyms for months.
Town Sports International LLC filed a Chapter 11 petition in Delaware that allows the company to keep operating while it works out a plan to pay creditors, negotiate rent reductions and turn the business around. It estimates liabilities and assets of $500 million to $1 billion each.