The company added that the filing was simply aimed at restructuring debt and that it had no plans to go out of business. In a message to employees, the company said it does not expect any changes in day-to-day operations, or in compensation and benefits.
CNN reports that the company laid off “a large chunk” of its 7,000 employees earlier this year to preserve cash flow.
Bloomberg reported on Friday that Town Sports International was on the verge of filing for bankruptcy after talks about an $ 80 million capital injection from Kennedy Lewis Investment Management failed.
Fitness clubs and gyms have taken a huge hit amid the pandemic, as the CDC continues to recommend against congregating indoors when possible. Sales of home fitness equipment have skyrocketed and Americans have adopted other healthy outdoor habits like biking, while restrictions keep some gyms closed.