Parent company of New York Sports Club and other gym chains file for bankruptcy

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The parent company of the New York Sports Club and several other fitness club chains have filed for bankruptcy as the COVID-19 pandemic continues to wreak havoc on its operations.In a statement on Monday, Town Sports International – which also owns Boston sports clubs, Lucille Roberts and several other fitness brands – said it has agreed to voluntarily file for Chapter 11 bankruptcy protection.

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.



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