Gyms continue their struggles during the COVID-19 pandemic as spin boutique operator Flywheel Sports has filed for Chapter 7 bankruptcy. After the pandemic shut down its locations, Flywheel will seek to sell its assets to pay off up to $100 million in liabilities.
A former potential buyer of Flywheel, Town Sports International, filed for bankruptcy on Sept. 14, with liabilities of up to $1 billion. TSI will permanently close at least 22 locations and look to modify lease agreements at another 13.
Gold’s Gym and 24 Hour Fitness both filed for bankruptcy earlier this summer.
Gym Bankruptcy Impacts:
Flywheel: Approximately 300,000 members will be affected by closures in cities such as Boston, Chicago, Washington, D.C., and Seattle.
Town Sports International: 600,000 members across 161 locations, largely New York, Boston, Philadelphia, and Washington Sports Clubs.
Gold’s Gym: German company RSG Group bought Gold’s Gym for $100 million in August.
24 Hour Fitness: Permanently closed 100 locations in June as it hoped to keep another 300 afloat.