The parent company of New York Sports Club and several other fitness club chains has filed for bankruptcy protection as the COVID-19 pandemic continues to wreak havoc with its operations.
In a statement released Monday, Town Sports International — which also owns Boston Sports Clubs, Lucille Roberts, and several other fitness brands — said it agreed to voluntarily file for Chapter 11 Bankruptcy protection.
The company added that the filing was made to simply restructure debt and that it does not plan to go out of business. In a message to employees, the company said it does not expect any changes to day-to-day operations or compensation and benefits.
CNN reports that the company laid off "much" of its 7,000-person workforce earlier this year to preserve cash.
Bloomberg reported Friday that Town Sports International was on the verge of filing for bankruptcy after talks of an $80 million capital injection from Kennedy Lewis Investment Management fell through.
Fitness clubs and gyms have taken a huge hit amid the pandemic, as the CDC continues to recommend against congregating indoors when possible. Sales of home fitness equipment have soared, and Americans have taken up other healthy outdoor habits like biking while restrictions keep some gyms closed.