The struggles of gyms and the fitness industry from the coronavirus pandemic has continued, claiming 24 Hour Fitness as its latest casualty. The national chain filed for bankruptcy yesterday as it permanently closed 100 locations in 14 states as it hopes to keep another 300 afloat.
In its Chapter 11 filing, 24 Hour Fitness said it secured $250 million to help reopen the majority of its gyms by the end of the month. CEO Tony Ueber said the company would reinvest in the remaining clubs and introduce “new innovative products and services.”
Gyms like 24 Hour Fitness are struggling as the pandemic shuttered locations for months. Gold’s Gym filed for bankruptcy in May, and other fitness companies have also expressed financial pain in 2020, including New York Sports Club warning it’s considering bankruptcy. Like small businesses across the country, the coronavirus outbreak has also caused small gym operators to close permanently.
The past few months have expedited a shift in the $94 billion fitness industry as gym-goers have dropped memberships for at-home alternatives like Peloton or upgraded to boutique studios. Peloton’s revenue rose 66% in the first three months of 2020 as the company now has more than 888,100 connected subscribers.