This Beloved Gym Chain Just Filed For Bankruptcy
The chain recently received a $10 million dollar loan, but it wasn't enough to keep the business afloat.
With indoor activities—especially those that involve heavy breathing, like exercise—presenting a potential COVID transmission risk and many municipalities forcing the closure of workout studios once again, it's no surprise that gyms are having a rough go of things amid the coronavirus pandemic. And with a recent COVID outbreak originating at a gym—despite the studio in question taking recommended coronavirus precautions—things are only getting tougher for the fitness industry. Youfit is the latest gym chain to feel the financial sting of the coronavirus pandemic, having recently filed for Chapter 11 bankruptcy protection, the South Florida Business Journal reports. Read on to find out the details, and if you want to make your workouts as safe as possible, This Is the Best Time to Go to the Gym, Experts Say.
"As it did for many industries, including other health clubs, the pandemic hit Youfit hard, and we have made the decision to restructure the company through a bankruptcy filing," Youfit spokesperson Evan Nierman said in a statement.
Youfit, which once had 85 gyms throughout the U.S., had closed a number of its locations prior to the pandemic, and has been struggling financially since COVID hit stateside.
The chain recently received a $10 million Paycheck Protection Program loan, and owes outstanding loans ranging from $127,000 to $499,000. However, despite its financial predicament, Youfit has not yet announced additional closures or plans to lay off employees. Instead, pending court approval, the business may be sold to its creditors for $75 million, which would effectively forgive its substantial debts. "As we enter this new phase—designed to position Youfit for future success—we remain committed to helping our members live healthy, fit lives," said Nierman.
The bankruptcy filing is the latest in a series of major disruptions to Youfit's business since the pandemic began, however. In June, Youfit's founder and CEO Rick Berks resigned from his position at the company, as did his daughter, Christy Berks-Stross, who served as the chain's legal counsel, the South Florida Business Journal reported. The chain also came under fire during the pandemic when customers realized they were still being charged their monthly premium despite the gyms being closed, according to the Miami New Times.
Youfit isn't the only business that's struggling amid the pandemic, however. Read on to discover which other businesses have been struggling to stay afloat. And for more gym closure news, This Beloved Gym Chain Is Closing 100 Locations.
Read the original article on Best Life.
Popular gym chain YogaWorks announced its plans to close all 66 of its stateside locations on Oct. 15. The company, which was founded in California in 1987, had temporarily closed all of its studios as a COVID precaution in early 2020, announcing the permanent closure of its New York City locations in April. However, despite YogaWorks' physical locations closing, the company announced that it would "continue to build upon the strengths of digital and educational platforms" with online classes. And for more business closure news, This Beloved Pet Store Is Closing All U.S. Locations.
24 Hour Fitness
24 Hour Fitness, which has over 300 clubs around the world, announced in June that it would be shutting 100 of its locations across 14 states. The company made it clear in a statement that the bankruptcy filing that precipitated the closures was a direct result of the coronavirus pandemic. "If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," said 24 Hour Fitness CEO Tony Ueber in a statement. And for more businesses struggling amid the pandemic, This Beloved Restaurant Chain Just Filed for Bankruptcy.
Of course, it's not just gyms feeling the effects of the coronavirus pandemic. Beloved tween store Justice announced in November that all of its retail locations would be closing. In a statement issued on Nov. 11, the brand revealed that "a wind down of all Justice locations is expected to conclude by early 2021." And for more news on businesses closing near you, sign up for our daily newsletter.
Gorham Paper and Tissue and White Mountain Tissue
Toilet paper may be a common stockpile item amid coronavirus, but that wasn't enough to keep some popular toilet paper companies from filing for Chapter 11 bankruptcy protection. On Nov. 4, Zohar III Corp., the parent company of Gorham Paper and Tissue and White Mountain Tissue, both of which manufacture toilet paper and other products, filed for bankruptcy in the company's home state of Delaware. And for another business in trouble, check out This Iconic Sporting Goods Company Is Closing Stores Nationwide.