National gym chain 24 Hour Fitness filed for bankruptcy on Monday (June 15) and said they expect to close 100 locations across the country. The company said they were hit hard by the coronavirus pandemic, which forced them to shut down as states enacted stay at home orders. While states have begun to allow some businesses to reopen, many gyms remain shuttered.
"If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," 24 Hour Fitness Chief Executive Officer Tony Ueber said in a statement. "With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders."
The company secured $250 million in funding and will use that to reopen some of its gyms. The company hopes to have most of its remaining 300 locations open by the end of June.
"The COVID-19 environment has proved that attention to health and fitness are more important now than ever before," he said. "As a result of this restructuring, we will gain financial strength and flexibility to accelerate our business transformation plan, which includes reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services that will enhance the fitness experience for our club members and guests for many years to come."
The closures will impact gyms in 14 states, including California, New York, Florida, and Texas. Click here to see a full list of all the gyms that are closing down.
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