These Two Major Gyms Just Filed for Bankruptcy
According to Business Insider, there's now a growing list of exercise companies that have filed Chapter 7 or 11 bankruptcy this year. Cyc Fitness, a popular cycling studio chain owned by Cyc Holdings in Delaware, filed for Chapter 11 earlier this month, as did Yogaworks, an indoor yoga chain out of California. YogaWorks also announced that it's closing all 55 of its locations nationwide (after already closing all of its spots in New York City back in April.)
Like your favorite independently-owned and national restaurant chains, gyms and indoor fitness facilities were forced to close in most parts of the country because of the coronavirus pandemic. Americans who relied on these businesses were forced to find new ways to exercise at home, and many gyms paused collecting membership dues from clients during such trying times. (Related: 9 Restaurant Chains That Closed Hundreds. of Locations This Summer.)
Now, even though parts of the U.S. have reopened, many fitness businesses are still struggling to make ends meet. They need to make up for months of lost income and try to entice customers to come back. But, working out with strangers indoors—even at limited capacity—is a risk that many people don't want to take quite yet.
For these reasons, gyms are folding left and right. Cyc Fitness and YogaWorks join such other establishments as FlyWheel Sports, which filed Chapter 7 and closed all of its 42 cycling studios around the country, Town Sports International, which owns New York Sports Clubs and Boston Sports Clubs and filed Chapter 11 bankruptcy, 24 Hour Fitness, which filed for Chapter 11 and is closing 130 of its nationwide locations, and Gold's Gym, which filed Chapter 11 and closed 30 out of 700 locations.
"If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," the CEO of 24 Hour Fitness, Tony Ueber, said in a statement, according to Business Insider. Unfortunately, most of the gyms above probably found themselves in the same exact position. And there may be more to add to this list as time goes on.
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