New York Sports Clubs owner files for Chapter 11 bankruptcy protection
NEW YORK (WABC) -- The owner of New York Sports Clubs says it's filing for Chapter 11 bankruptcy protection.
Town Sports International announced on Monday that it has reached an agreement with its senior secured lenders to support its ongoing operations through a voluntary Chapter 11 filing.
The filing includes New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs Washington Sports Clubs, Lucille Roberts, Total Woman and Around the Clock Fitness brands.
"With Chapter 11, companies generally seek a seamless transition in operations upon a filing, so our members will not recognize a break in service," the company said in a letter to its members.
The company added that it is not going out of business, but "restructuring is the best way to properly respond to the COVID-19 pandemic, with the long-term goal to emerge as a thriving powerhouse in the fitness industry."
Town Sports International says that they are continuing to open their clubs in a phased approach.
Read the full letter to members HERE.
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