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.

Share:
More In Business
After Bitcoin Plunges Over the Weekend, Investors Prepare for Unpredictable Week for the Markets
Between uncertainty over the Omicron variant, and the possibility of a sooner-than-expected taper from the Fed, it was an especially volatile week for the markets. The release of the November jobs report on Friday, with job growth coming in way lower than estimates also caused movement on the market. Frances Stacy, Director of Strategy at Optimal Capital explains why all of this, combined with Bitcoin’s huge drop over the weekend, could make for another rough week for investors.
Significance of November Jobs Report as Omicron Variant Spreads
It was a chaotic week for the market, as investors reacted to the new omicron variant. Today though is all about jobs. Just ahead of the November jobs report, David Riley, Chief Investment Strategist at Blue Bay Asset management gave a run down of what to expect from the report, and what it could mean for investors.
Evergrande Shares Sink as Real Estate Giant Nears Debt Default
Troubled Chinese real estate giant Evergrande is once again nearing the brink of collapse. Shares of Evergrande sunk to a new record low on Monday, closing down 20 percent, as debt default fears resurfaced. Drew Bernstein, co-chairman at consultancy MarcumBP, joined Cheddar's Opening Bell to discuss. He said U.S. investors have to understand that "there is no company in China that's too big to fail, that's for sure," and that the Chinese government will be prioritizing the social welfare of the populace. Bernstein did note that it would be a managed collapse in some form.
Why Commercial Planes Are Shrinking
Earlier this year, JetBlue flew its inaugural flight into the United Kingdom. It was a game changer — not only did the airline enter the transatlantic market, but the plane that completed the flight was a single-aisle jet. For decades, flying the distance was synonymous with jumbo jets, but today narrow-body aircraft are now proving they are up for the task — and maybe even the best option. In this episode, Cheddar examines why airlines are betting on narrow-body aircraft.
Load More