By Damian J. Troise
The company that runs New York Sports Club and Lucille Roberts gyms filed for bankruptcy protection with COVID-19, still prevalent in man parts of the U.S., gutting membership rolls at fitness companies nationwide.
Gold's Gym sought bankruptcy protection in May and 24 Hour Fitness Worldwide filed for bankruptcy in June. Many companies, including Planet Fitness, furloughed workers in order to conserve cash.
Town Sports International Holdings Inc., which also operates Washington Sports Club and Total Woman Gym and Spa, said Monday that it can no longer pay its debts.
The company lost $136 million during the first quarter this year, only a fraction of which included state- and city-mandated shutdowns of retail shops, gyms, salons, restaurants, and bars. By the end of the three-month reporting period, 95 percent of Town Sports' clubs had been closed.
Town Sports operates 185 clubs and serves 580,000 members, mostly in the Northeast.
Gyms have been allowed to reopen at a fraction of their capacity in some regions like the Northeast. Those who do go to gyms in New York City are required to wear a mask at all times and gyms can only operate at one-third capacity. Group fitness classes are still not permitted.
Yet with more than 33,000 COVID-19 related deaths in New York, most of them in New York City, thousands of one-time gymgoers have taken their routines outdoors, or to their own homes.
Home fitness company Peloton reported a 172 percent surge in revenue during its most recent quarter and it doubled its subscribers. Bike shops in New York, as well as most outdoor fitness gear sellers, have been largely cleared out.
Gene sequencing test maker Illumina Inc. said Sunday that its board has accepted the resignation of its CEO and director, Francis deSouza, effective immediately.
“Any consumer can tell you that online airline bookings are confusing enough," said William McGee, an aviation expert at the American Economic Liberties Project. "The last thing we need is to roll back an existing protection that provides effective transparency.”
Cheddar News checks in to see what to look out for Next Week on the Street as former president Donald Trump makes an appearance in federal court after being indicted. Investors will also keep an eye on the Federal Reserve meeting to see what comes out of that while earnings continue to pour in.
Google will launch its long-delayed News Showcase product this summer.
Walmart is expanding its HIV treatments, planning to add over 80 specialty facilities across nearly a dozen states by the end of the year.
The Internal Revenue Service said there are about $1.5 billion in unclaimed tax refunds dating back to 2019.
General Motors will allow its electric vehicles to use Tesla charging stations across the country.
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Modelo Especial is now the top-selling beer in the United States, dethroning Bud Light after 22 years. In May, sales of Modelo Especial hit $333 million. That's up 15.6 percent from the same period last year.
Electric vehicles made by General Motors will be able to use much of Tesla's extensive charging network beginning early next year. In addition, GM will adopt Tesla's connector, the plug that links an electric vehicle to a charging station.
