US FITNESS CHAIN FILES FOR BANKRUPTCY

National gym chain 24 Hour Fitness has finally filed for bankruptcy after the COVID-19 pandemic shuttered its facilities for months but said the company secured $250 million in funding to help reopen some of its clubs and expects a majority of locations to be open by the end of June.

Writing for CNN Business on Monday night, June 15, 2020, Jordan Valinsky said that after the Chapter 11 filing, 24 Hour Fitness will emerge a smaller chain. It permanently closed 100 US locations in 14 states with roughly 300 clubs remaining.

"If it were not for Covid-19 and its devastating effects, we would not be filing for Chapter 11," CEO Tony Ueber said in a statement. "We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future."

He also said the restructuring will result in "reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services." 24 Hour Fitness, which began in 1985, is a privately held company.