N.Y. Sports Clubs Ex-Chief Builds Rival Chain With Kennedy Lewis
- Patrick Walsh was chairman and CEO before NYSC bankruptcy
- Kennedy Lewis to provide $100 million term loan, become owner
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The former head of New York Sports Clubs, the gym chain that went bankrupt as the Covid-19 pandemic was spreading, is building a new fitness business that could compete with NYSC’s new owners.
The venture led by Patrick Walsh is backed by $100 million from investment firm Kennedy Lewis Investment Management, according to people with knowledge of the situation. Kennedy Lewis will become the company’s largest shareholder, receiving 51% of common stock for providing the senior secured, first-lien delayed draw term loan, the people said.