Fitness center owner Town Sporting activities International has filed for individual bankruptcy defense in Delaware, citing a sharp drop in profits owing to pandemic-linked closures of its services.
“We foresee that the COVID-19 pandemic will proceed to negatively impression our functioning benefits in future durations,” the firm explained in a letter to its customers.
Town Sporting activities owns a variety of gym chains, including New York Sporting activities Club, Boston Sporting activities Club, and Lucille Roberts. It has about 605,000 customers and just about 200 fitness centers, most of the fitness centers remained closed it explained.
In June, Town Sporting activities explained it was looking at strategic solutions, including negotiating with present lenders to meet up with impending debt maturities. Its 2013 revolving credit facility expired on August 15. Its 2013 phrase loan facility was owing to mature on November 15, 2020.
“Town Sporting activities International is not likely out