New York Sports Clubs files for Chapter 11 bankruptcy
The owner of one of the largest gym chains in the Northeast and in the Hudson Valley is filing for bankruptcy.
New York Sports Clubs has filed for Chapter 11, saying it's unable to keep up with debt payments. Owners are listing liabilities of $500 million to $1 billion in court documents.
The good news is that even with this filing, the company says it's not planning to shut down any gyms right now.
Profits have run short after gyms in New York closed in March only to reopen with strict regulations in late August.
While closed, Town Sports International, which owns New York Sports Clubs, laid off thousands of workers and stopped paying rent just to get by.
Even though many locations are open again, state rules like 33% capacity limits and fears of catching coronavirus have forced people to find alternative ways to workout away from the gym.
"I hesitated about coming back. But like I said that, when I came and I asked the manager how they're running things, and then I saw for myself I felt okay, I'm going to try this out. If I notice a chance like an uptick in members and it's too crowded, I'll leave," says Nate Butler, of Ossining.
In a statement, the company wrote, "Our members will not recognize a break in service. Town Sports International is not going out of business."
New York Sports Clubs has 12 locations in the Hudson Valley, including eight in Westchester and two apiece in Rockland and Putnam.