24 Hour Fitness Set to Emerge from Chapter 11 by Year End
24 Hour Fitness Restructure: Brand set to emerge from chapter 11 by December 31, 2020.
24 Hour Fitness is set to emerge from chapter 11 by December 31, 2020, after the U.S. Bankruptcy Court for the District of Delaware confirmed the plan of reorganization. As a result, the brand will reduce approximately $1.2 billion of funded debt.
“We’re pleased to announce that, with confirmation of the plan, 24 Hour Fitness is firmly on track to emerge from chapter 11 by the end of the year,” said Tony Ueber, the CEO of 24 Hour Fitness, in a statement. “The court’s decision reinforces the strength and promise of our business strategy and our plans for the future. Most importantly, it ensures we will continue our mission of helping to transform the lives of our members every day through fitness long into the future thanks to the talented and inspirational community of 24 Hour Fitness team members and the support of our lenders and other stakeholders.”
24 Hour Fitness Restructure Plan
According to 24 Hour Fitness, upon emergence the company will operate with an optimized cost structure, leaner balance sheet, and improved real estate footprint.
The fitness brand announced in June 2020 it had voluntarily filed for relief under Chapter 11 due to the impact of the COVID-19 pandemic, and would close around 100 locations. It now boasts around 300 locations nationwide.
24 Hour Fitness has more than 100 locations in California, and as a result has been unable to reopen indoor operations at a large bulk of its facilities as the state continues to navigate strict restrictions.
Outdoor locations are open at select 24 Hour Fitness clubs in California and Oregon, and indoor operations have resumed in states including Colorado, Florida, Hawaii, Nevada, New Jersey, New York, Texas and Washington D.C.
24 Hour Fitness is one of a number of fitness brands that have filed for relief under Chapter 11 due to the disproportionate impact of the COVID-19 pandemic on the fitness industry, such as In-Shape Health Clubs and Gold’s Gym.