The parent company of New York sports clubs and gyms of Lucille Roberts, Town Sports International Holdings, has filed for Chapter 11 protection following a cash flow shortage due to the pandemic.
The gym isn't closing the store, however. Instead, the company plans to restructure and become "a thriving powerhouse in the fitness industry," according to its website. It will continue to operate its facilities, which are mostly located on the east coast, as it works through the bankruptcy process.
In other statements, the gym has warned shareholders that it is facing problems due to closings related to the pandemic.
"The pandemic has created unprecedented economic volatility and uncertainty that has negatively impacted our recent operating results," it said earlier this month. "We assume that the COVID-19 pandemic will continue to have a negative impact on our operating results in the future."
In general, gyms have been hit hard by the pandemic, with most forced to close and many still awaiting government permission to reopen. It was another blow to retail because before the Covid-19 retail centers saw gyms as an excellent way to fill spaces closed by department stores or dark anchors.
With the closings and health advice suggesting people avoid the close-up experience of a gym, they've made income from bleeding. Some national gyms, including Gold & # 39; s Gym International and 24-Hour Fitness Worldwide, have filed for bankruptcy, forcing hundreds of health clubs to close completely.