Gyms across the United States are navigating unforeseen circumstances as they reopen amid the COVID-19 pandemic.
Bloomberg’s Katherine Doherty reported Friday that 24 Hour Fitness Worldwide Inc. is preparing for a potential Chapter 11 bankruptcy filing “to cut its debt as it re-opens locations across the country with precautions in place for social distancing.”
“We are considering a broad range of options to ensure the long term sustainability and success of 24 Hour Fitness and we are not going to comment publicly on our strategic plans,” 24 Hour Fitness said in a statement to Bloomberg.
Related content: 24 Hour Fitness Members Frustrated After Closures
Doherty reported that 24 Hour Fitness, which is headquartered in San Ramon, Calif., was struggling financially before gyms nationwide were forced to close in March. The company has more than $1.3 billion of debt due to a 2014 leveraged buyout by AEA Investors and the Ontario Teachers’ Pension Plan.
The company has started opening some of its 430 gyms with new health guidelines, and is talking with investors about a loan that would keep 24 Hour Fitness operating during a court restructuring.
USA Today reported in early May that Gold’s Gym filed for Chapter 11 bankruptcy protection.
Related content: Gold’s Gym Closes About 30 Fitness Centers