The nationwide fitness chain 24 Hour Fitness has filed for bankruptcy and plans on closing 134 locations in 14 states, it announced on Monday.
It blamed the “devastating impacts” of the COVID-19 pandemic. The company’s gyms in Montana are not listed on the list of impending closures.
In a statement Monday, the company said that filing for Chapter 11 bankruptcy will allow it to secure $250 million in debtor possession financing, subject to court approval.
The funding, plus revenue from cash operations, will allow 24 Hour Fitness to continue to reopen clubs nationwide in accordance with local and public health agency guidelines.
The company said it expects to reopen the majority of its footprint by the end of June.
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11,” said CEO Tony Ueber. “With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders.”
Earlier this month, Gold’s Gym also filed for relieve under Chapter 11. It too blamed the global impacts of COVID-19 and said it would be closing 30 company owned gyms, though none are located in Montana.
“To be clear, the filing should not impact our licensing division, it is not associated with any of our locally-owned franchise gyms, nor will it prevent us from continuing to support our system of nearly 700 gyms around the world,” the company said in a statement.