In this Feb. 7, 2013 photo, a man walks past a shuttered New York Sports Club on Water St. in New York. Town Sports International Holdings Inc., the owner of New York Sports Club and Lucille Roberts filed for Chapter 11 bankruptcy Monday, Sept. 14, 2020, as gym operators struggle to keep afloat amid nationwide shutdowns. (AP Photo/Mary Altaffer, File)
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.
CLMBR is hoping to become the next big thing in connected fitness. The brand offers a high intensity, low impact workout with on-demand, instructor-led classes. Avrum Elmakis, CLMBR's CEO and founder, joined Cheddar to discuss where the company is heading next.
Peloton is reportedly drawing interest from multiple suitors. According to the Wall Street Journal, Amazon is considering acquiring the exercise bike company as it looks to expand into the health and wellness technology industry. Hatem Dhiab, managing partner at Gerber Kawasaki, joined Cheddar to discuss Peloton's future and which company might be its best bet as a buyer.
Amazon shares jumped north of 13 percent in after-hours trading as the E-commerce giant posted a beat on earnings in its fourth quarter. Amazon saw particular success in its cloud computing business, as well as its stake in EV startup, Rivian after its massive IPO. Deren Baker, CEO, Edge by Ascential joined Cheddar's Opening Bell to discuss.
After a seven-year hiatus, Nissan is returning to the Super Bowl action-packed, star-studded commercial. Allyson Witherspoon, Nissan's Chief Marketing Officer, joined Cheddar's Opening Bell to discuss the concept of the ad campaign and how it gives clues into where the brand is heading next.
Google parent company Alphabet reporting a beat on its Q4 earnings report, with revenue up 32%. The company's strong quarter was thanks to success in its cloud and advertising businesses, which both saw solid year-over-year growth. Angelo Zino, Senior Industry Analyst, CFRA Research joined Cheddar's Opening Bell to discuss the tech giant's blowout results.
Yumeka Rushing, Chief Strategy Officer at the NAACP, talks about the private sector's commitment toward racial equity and how the NAACP is attracting younger Americans to the organization's latest initiatives.
Lydia Simmons, founder of 'Moms Official Objective' or 'M.O.O.,' joins Cheddar News to discuss nutritional and hormonal support products for every stage of womanhood.
