- A growing number of fitness and sporting goods companies are filing for bankruptcy, as the coronavirus pandemic continues to upend the entire retail industry.
- Brands listed failed to recover from temporary government-mandated closures to gyms and indoor fitness facilities earlier this year.
- These are the five fitness and sporting goods companies that have filed for bankruptcy so far in 2020.
- Visit Business Insider’s homepage for more stories.
The coronavirus outbreak has wreaked havoc on nearly every sector of the retail industry — including fitness and sporting goods.
A growing number of fitness companies have filed for Chapter 7 or Chapter 11 bankruptcy in recent months, after failing to recover from temporary government-mandated closures to gyms and indoor fitness facilities intended to prevent the spread of the disease.
Each of these companies also join a rapidly expanding list of retail bankruptcies so far this year, which include restaurants and off-price clothing brands.
Here’s a list of the fitness and sporting goods companies that have filed for bankruptcy in 2020.
Flywheel Sports filed for Chapter 7 bankruptcy on September 15 in an announcement that called for the permanent closure of all 42 of its spin studios around the country. The company had originally laid off 98% of its staff temporarily in March as a result of the financial strain from the pandemic, and closed locations to prevent the spread of the virus.
Source: Business Insider
Town Sports International
Alexi Rosenfeld/Getty Images
Town Sports International — the parent company of New York Sports Clubs and Boston Sports Clubs, among a number of other fitness chains — filed for Chapter 11 bankruptcy on September 14, citing pandemic-related difficulties.
The company said in a statement that it aims to use financial restructuring to “properly respond to the COVID-19 pandemic, with the long-term goal to emerge as a thriving powerhouse in the fitness industry.”
Source: Business Insider
24 Hour Fitness
REUTERS/Jeenah Moon
24 Hour Fitness filed for Chapter 11 bankruptcy in June, announcing at the time that it would permanently shutter 130 of its gym locations in the US.
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11,” 24 Hour Fitness CEO Tony Ueber said in a statement. “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.”
Source: Business Insider
Gold’s Gym
Gold’s Gym filed for Chapter 11 bankruptcy protection in May, shortly after the company announced it would shutter 30 locations that had been temporarily closed early on in the pandemic.
As part of the bankruptcy proceedings, the company said permanent closures are slated to affect only company-owned locations — which comprise 10% of Gold Gym’s 700 locations around the world — and will not impact its franchises.
Source: Business Insider
Modell’s Sporting Goods
Modell’s Sporting Goods was among the first retailers to file for bankruptcy when it announced in March that it would permanently close and liquidate all of its stores.
“While we achieved some success, in partnership with our landlords and vendors, it was not enough to avoid a bankruptcy filing amid an extremely challenging environment for retailers,” CEO Mitchell Modell said in a statement, according to Bloomberg.
Source: Business Insider
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