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.
We're entering a brave new world of broadly legal sports betting. Over 30 states and Washington, DC, have legalized sports betting in the year and a half since the supreme court struck down the federal ban on the activity.
But legalization isn't a simple proposition. The federal law might be struck down but its still up to each state to decide whether to legalize sports betting, and answer a litany of questions that come with it. Should you include online gambling? How much should people be allowed to bet? Should there be limits on advertising for sports betting?
Darren Heitner, founder of Heitner Legal, and Daniel Wallach, founder of Wallach Legal, join None of the Above's "Business of Sports: The Year Gambling Took Over" special to discuss.
Over the past decade, the resale market has completely transformed, allowing people to utilize platforms such as Etsy, Poshmark, eBay, and more to create a lucrative business from the comfort of their homes. However, as the space of secondhand sellers and thrifters gets more and more crowded, small businesses are facing bigger obstacles to not only thrive in the market but also survive. Yvette Liebesman, a law professor at Saint Louis, joins Cheddar News to discuss.
Even as tech giant Google implements a vaccination mandate, charging its employees to declare their vaccine status within a time frame or risk dismissal, the federal government is tangled up in the court system trying to impose one of its own. Cindy Cohn, the executive director of the Electronic Frontier Foundation, and Harry Nelson, founder and managing partner of Nelson Hardiman LLP, joined Cheddar to debate the ethics, efficacy, and legality surrounding the issue. While Cohn noted that she thinks the federal mandate might be legally sound, her organization is also concerned with a separate question of privacy. "At EFF what we're most interested in is the digital surveillance that's going along with some of these attempts to try to track and confirm whether people are vaccinated or not," she said.
A new report from CNBC says Instagram recently reached a new milestone -- 2 billion monthly active users. It comes amid a year of controversy for the photo-sharing app and its parent company, Meta. SocialFlow CEO Jim Anderson joins Cheddar News' Closing Bell to discuss.
A report from KPMG International found that global mergers and acquisitions in 2021 reached $5.1 trillion in transactions. Carol Streicher, U.S. deal advisory and strategy service group leader for KPMG, joined Cheddar's "Closing Bell" to talk about the record-breaking year and next year's outlook, which KPMG says could be even more staggering. "We're not seeing any slow down in '22," she said, regarding survey results of 350 business leaders. "Things that were tailwinds for us in M&A activity this past year are going to continue to be tailwinds for us in 2022."
MotorTrend named the Rivian R1T as the 2022 truck of the year - a prestigious title given by the publication as a way for automakers to tout third-party validation. Rivian beat out traditional, legacy truck favorites like Ford and General Motors.
MotorTrend said the company earned high marks for safety, efficiency, value, advanced design, engineering excellence, and performance of intended function. MotorTend head of editorial Ed Loh joins Cheddar News' Closing Bell to discuss.
Stocks closed higher Wednesday on the heels of the Federal Reserve's December meeting. Chairman Jerome Powell announced the central bank would leave interest rates low and unchanged for now, with the anticipation of three hikes next year. The Fed will also speed up the timeline of its asset tapering, beginning in January 2022. Dan Russo, Portfolio Manager and Director of Research at Potomac Fund Management joins Cheddar News' Closing Bell to discuss today's close, how investors reacted to the Fed's announcements, and more.
There is a new way for investors to bet on cannabis - the AdvisorShares Poseidon Dynamic Cannabis ETF targets about 20 of the biggest names in U.S. cannabis. It comes at a time when it's still difficult for investors to access the space. Cheddar News cannabis reporter Chloe Aiello spoke with co-founder and managing director for Poseidon Investment Management, Emily Paxhia.
Victor Li, an economics professor at the Villanova School of Business, joins Cheddar News' Closing Bell, where he discusses the latest Fed decision and the implications it has on the stock market.
