NEW YORK - It has locations dotted all throughout the city but now New York Sports Clubs shows signs of vulnerability as it's parent company seeks bankruptcy protection.
What You Need To Know
- Town Sports International filed for Chapter 11 bankruptcy protection due to COVID-19
- Company says it needs the courts help to negotiate with landlords and creditors
- So far, there are no plans to close any locations
It likely means more uncertainty for New Yorkers looking for a place to work out as Town Sports International files for Chapter 11, blaming losses on the pandemic.
In a statement to members posted on the New York Sport Clubs website, company officials say it hopes to use the court's help to negotiate with landlords and creditors saying, "Town Sports International is not going out of business. "Restructuring is the best way to properly respond to the COVID-19 pandemic."
"I think the gym can reopen safely so it doesn't make much sense to me" said one man.
Gyms were forced to close back in March. Now, facilities are allowed to reopen at 33 percent capacity. The company, which also operates clubs in Boston, Philadelphia and DC, says it doesn't plan to close any of its 86 locations and will continue to reopen clubs in a phased approach.
Earlier this year, the company was forced to issue refunds to customers after it charged customers while its locations were shut down.
In its announcement, leaders are assuring customers that it's worth it to remain a member, promising that the bankruptcy will strengthen its brand, despite the obvious difficulty.