24 Hour Fitness Preparing To File For Bankruptcy

[danieltx]

**broken link removed**

(Bloomberg) -- 24 Hour Fitness Worldwide Inc. is in discussions with suitors as it seeks a potential buyer to serve as a stalking horse in a court-supervised bankruptcy process, according to people with knowledge of the matter.

The operator of more than 430 gyms is working with an adviser to solicit potential bidders ahead of a planned bankruptcy filing, said the people, who requested anonymity because the talks are private.

“24 Hour Fitness is productively engaged with its creditors to explore strategic options and ensure the company is well positioned to serve its members nationwide for the long-term,” the San Ramon, California-based company said in a statement sent to Bloomberg.

24 Hour Fitness-- which has felt the brunt of nationwide shutdowns to curb the spread of Covid-19 -- skipped a June 1 interest payment on its unsecured bonds due 2022, Bloomberg reported earlier this week.As it works out its borrowings, the fitness chain also started reopening certain locations in Texas under state and federal guidelines.

The contemplated sale process of the company is one option 24 Hour is weighing as part of its restructuring efforts, one of the people said. A stalking horse typically sets a floor for bidders looking to buy assets of a company in a bankruptcy restructuring.

The company, which has more than $1.3 billion of debt stemming from a leveraged buyout by AEA Investors and the Ontario Teachers’ Pension Plan in 2014, had been in negotiations with creditors to rework its debt load. Those talks ended in a stalemate around the time of mandated gym closures, it said in a private earnings report in March.

The company’s bonds due 2022 last traded on May 12 at 3 cents on the dollar, according to Trace data.

Coronavirus was just the nail in the coffin - they've had a horrible balance sheet for years.

And I'm sure the beyond ridiculous policy of reserving 60 MINUTE MAX workout windows 24 hours in advance at the re-opened clubs - which then close for 30 minutes for cleaning after every 60 minute block - has only caused them to lose more members. Good riddance to businesses that intentionally hamper their own ability to generate revenue.

 

[MR. BMJ]

I hope they stay open, I have had my membership since 1994, and I only pay $54/yr ($108/yr between my brother and I).

 

[sazo75]

**broken link removed**



Coronavirus was just the nail in the coffin - they've had a horrible balance sheet for years.

And I'm sure the beyond ridiculous policy of reserving 60 MINUTE MAX workout windows 24 hours in advance at the re-opened clubs - which then close for 30 minutes for cleaning after every 60 minute block - has only caused them to lose more members. Good riddance to businesses that intentionally hamper their own ability to generate revenue.

Yep I fully agree, I feel like these businesses that are trying so hard to make it so the consumer feels as safe as possible but in reality those that are willingly going to go back to the gym, see all this as a bunch of shenanigans and honestly it makes me NOT want to go back until they just normalize things instead of putting every single possible safety net into place, same thing with stores as well, don't even feel like going when I have to wait outside the store in a long ass line, wear a annoying ass mask, be told where to stand which way to walk down certain isles, etc etc. Use to love going to the grocery store and shop around but now I only go when I absolutely need to and just try to get my shit and get out.

 

[danieltx]

I hope they stay open, I have had my membership since 1994, and I only pay $54/yr ($108/yr between my brother and I).

I'd love to see them stay open as well, I've been a member for 8 years. But it's hard to support them when they shut down before they were required to and reopened under conditions that make it virtually impossible for serious lifters to train there.

I doubt they do a complete shutdown, but I'm sure many clubs won't reopen. I'm hoping LA Fitness will scoop up some of them given their strong balance sheet.

 

[Wonton]

Is it chapter 11?

I can't believe people cancelled their membership. That's unheard of !! Lol

 

[NEMSZ]

Man 24 Hour Fitness down here is absolute trash, left that gym to just workout at home for a reason... They were a MESS, everything was disorganized, weights were missing, literally missing from the gym completely (barbells, dumbbells and even cable attachment equipment etc would go missing or wasn’t there altogether), they had a bunch of machines that were broken for months on end... Literally the biggest trash gym I’ve ever been a member of in my life.. I have nothing good to say about them from my experience there..

Porkys was an AWESOME local gym down here in SFL, any guys from down here will tell you how awesome it was, man I miss those days but they sold to stupid ass Youfit like 5-6 years ago...

 

[pheenix]

**broken link removed**



Coronavirus was just the nail in the coffin - they've had a horrible balance sheet for years.

And I'm sure the beyond ridiculous policy of reserving 60 MINUTE MAX workout windows 24 hours in advance at the re-opened clubs - which then close for 30 minutes for cleaning after every 60 minute block - has only caused them to lose more members. Good riddance to businesses that intentionally hamper their own ability to generate revenue.

This was my gym

 

[BigGame]

None where I live in Upstate NY. We also don’t have any LA Fitness either.

 

[FrancisK]

I hope they stay open, I have had my membership since 1994, and I only pay $54/yr ($108/yr between my brother and I).

Haha that probably had a lot to do with why they’re going under! My fucken YMCA charged 110 a month and still closed because of the rona, sucks.

 

[pimpman]

Man 24 Hour Fitness down here is absolute trash, left that gym to just workout at home for a reason... They were a MESS, everything was disorganized, weights were missing, literally missing from the gym completely (barbells, dumbbells and even cable attachment equipment etc would go missing or wasn’t there altogether), they had a bunch of machines that were broken for months on end... Literally the biggest trash gym I’ve ever been a member of in my life.. I have nothing good to say about them from my experience there..

Porkys was an AWESOME local gym down here in SFL, any guys from down here will tell you how awesome it was, man I miss those days but they sold to stupid ass Youfit like 5-6 years ago...

Man I use to work out at porky's on 122ave and coral way and the one on Miller and 107ave was in my corner of house I could walk to it but that one was too small. And the porky's on 122ave and coral way use to be zone fitness and I went there since first day they opened up until porky's brought them but once it turned into you fit I was out

 

[sub7percent]

New one just opened up by me. Real nice place all new equipment. Just joined in February.
My guess is someone may just buy them out.

 

[fasterthenyoo]

Reservations suck but I see the point. Its the only way that they can keep track of how many people they are letting in and keeping from having to turn people away at the door. Until the states allow gyms to open at 100% I see them continuing to do this. My 24hr has been ridiculous because its the only one open within probably 15-20miles and there are easily 200+ people there at 5am when normally there might be 20-50max.

Heard from an "insider" that they are looking into bankruptcy and closing their lower performing/older locations.

LA Fitness just built a gym extremely close to me that I could join. We'll see.

 

[Creation]

If anyone is looking to switch to Life Time Athletic - I have a code to get $0 enrollment and a discount on the monthly rate - just pm me!

 

[tren_plz]

Sounds like i'll be getting that Stair climber after all.

 

[danieltx]

Reservations suck but I see the point. Its the only way that they can keep track of how many people they are letting in and keeping from having to turn people away at the door. Until the states allow gyms to open at 100% I see them continuing to do this. My 24hr has been ridiculous because its the only one open within probably 15-20miles and there are easily 200+ people there at 5am when normally there might be 20-50max.

You're aware that 24 Hour Fitness is literally the ONLY gym doing that, right? There are many other ways to track how many people are in a club at a given time.

 

[fasterthenyoo]

You're aware that 24 Hour Fitness is literally the ONLY gym doing that, right? There are many other ways to track how many people are in a club at a given time.

understood. but what if they were allowing, lets just make up a number, 200 people in without reservations. you are number 201 and they turn you away. Would you be pissed and scream at the person that didn't let you in or suck it up and wait for someone to leave? with reservations you get to do so from home and if the slot is not available you pick one that is. I am not saying that I entirely agree with what they are doing but I can understand why.

 

[danieltx]

understood. but what if they were allowing, lets just make up a number, 200 people in without reservations. you are number 201 and they turn you away. Would you be pissed and scream at the person that didn't let you in or suck it up and wait for someone to leave? with reservations you get to do so from home and if the slot is not available you pick one that is. I am not saying that I entirely agree with what they are doing but I can understand why.

I've been to 4 public gyms, including LA Fitness and Gold's Gym locations in major urban centers at highly trafficked intersections, in the past 2 weeks. Nobody has been turned away due to capacity. It's really a non-issue given how many people have cancelled / frozen memberships and the large number of people still avoiding public spaces.

 

[NEMSZ]

Man I use to work out at porky's on 122ave and coral way and the one on Miller and 107ave was in my corner of house I could walk to it but that one was too small. And the porky's on 122ave and coral way use to be zone fitness and I went there since first day they opened up until porky's brought them but once it turned into you fit I was out

That’s where I worked out too lol I remember I signed up when I was in high school and they still had the zone fitness stuff in there.. I think it just turned into porkys at that point.. That gym was awesome, I loved that gym, the staff and the people, pretty much everyone knew gym etiquette in there (with few exceptions) and everyone got along..

I remember when they were selling that everyone was gossiping wondering what was happening and then they slowly started to change everything and even fired the workers, all the original members were gone.. I don’t know a single person that went there when it was porkys that goes there now...

Then I don’t know who started Miami Iron Gym and it was the spot for a while after but I think it’s died down though I’ve never been there..

And I heard recently they opened up a “Porkys Harcore Fitness” on 157ave and Sunset, I haven’t checked it out but my buddy goes there and said it’s just like the old porkys. Have you been?

 

[fasterthenyoo]

I've been to 4 public gyms, including LA Fitness and Gold's Gym locations in major urban centers at highly trafficked intersections, in the past 2 weeks. Nobody has been turned away due to capacity. It's really a non-issue given how many people have cancelled / frozen memberships and the large number of people still avoiding public spaces.

We are not experiencing that here. The 24hr that I go to is at capacity at 5am. Mostly because, again, its the only 24hr within 20+ miles or so that is open. Depending how many they close, most of this will die down and get closer to normal once the locations that are reopening open.

 

[pimpman]

That’s where I worked out too lol I remember I signed up when I was in high school and they still had the zone fitness stuff in there.. I think it just turned into porkys at that point.. That gym was awesome, I loved that gym, the staff and the people, pretty much everyone knew gym etiquette in there (with few exceptions) and everyone got along..

I remember when they were selling that everyone was gossiping wondering what was happening and then they slowly started to change everything and even fired the workers, all the original members were gone.. I don’t know a single person that went there when it was porkys that goes there now...

Then I don’t know who started Miami Iron Gym and it was the spot for a while after but I think it’s died down though I’ve never been there..

And I heard recently they opened up a “Porkys Harcore Fitness” on 157ave and Sunset, I haven’t checked it out but my buddy goes there and said it’s just like the old porkys. Have you been?

Oh no I didn't know that till now that you told me I'm go check it out I'm close I'm off miller and 137ave lol

I go to la fitness on 8st and 142ave but I'm tired of that place and everyone knows me so to get a workout with out someone talking to me is impossible lol