Struggling with heavy debt loads even before COVID-19 shuttered the global economy, Town Sports International (NASDAQ:CLUB), the owner of the New York Sports Clubs chain, has filed for Chapter 11 bankruptcy protection in the District of Delaware.
The move allows the company, which has around 600K members, to keep operating while it works out a plan to pay creditors and turn the business around. It listed both estimated liabilities and assets of $500M-$1B.
Another one bites the dust… Gold’s Gym sought court protection from its creditors in May, while 24 Hour Fitness Worldwide filed for bankruptcy in June.
Who’s up? The fitness-from-home sector has boomed during the coronavirus pandemic, with companies like Peloton (NASDAQ:PTON) seeing their stock price surge, and its latest earnings showing that demand for its bikes remains strong.